What is business interruption insurance for the wedding & event industry?

Business interruption insurance explained for the wedding and event industry

Converted barn wedding venue

What is business interruption insurance?

Business interruption protects against financial losses following material damage to property. It is commonly misunderstood that whilst contents or buildings policy will pay for the initial costs of a property damage claim, there is no financial recovery for losses made whilst your business is unable to trade i.e. turnover or loss of profits.

What is the business interruption indemnity period?

The indemnity period is the time for which insurers will pay for losses, capped to the maximum indemnity period. Our policies provide a 12 or 24 month indemnity period, which means that your financial losses will be covered for up to a maximum of 12 or 24 months.

What does a business interruption claim look like?

Business interruption claims come in various shapes and forms, depending on your trade. Here are a few examples from the wedding and event industry.

Wedding venue and hotel

Due to an outbreak of legionnaires disease from poorly cleaned showers, hot tubs or swimming pools, the public authority can close your business until the disease and problem are eradicated. This could lead to a loss of profits whilst your business is unable to trade, which would be claimable under a business interruption policy.

Mobile catering

If any of your kitchen equipment broke down before an event or wedding and you were unable to fulfil a contract, which resulted in a loss of profits, business interruption covers any financial losses.

Venue stylist

If there was a fire or flood at your storage unit, which damaged your venue props and accessories and this resulted in cancelled bookings, business interruption would cover any financial losses, including costs to arrange temporary storage premises.


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Which wedding and event businesses require business interruption insurance?

Any business with insured property and contents can buy a business interruption policy. For a business interruption policy to be effective, there must be:

  • a property damage policy in place, which covers physical damage to the premises or contents; and
  • an equivalent insured peril under the material damage policy for a claim to be payable.

For example, if flood cover is excluded under your contents policy, then a business interruption claim related to flood will also be excluded.

Is it a legal requirement?

No, it’s not a legal requirement for your wedding and event business.

How much does business interruption insurance cost?

A business interruption premium is determined by many factors such as; your turnover and gross profit figures, business activities, construction of buildings and other rating factors. Ask us for a free no-obligatory quote today by calling 0121 550 2380.

Does business interruption insurance cover interruptions as a result of pandemics?

Our business interruption policy, along with the entire insurance market, excludes cover for COVID-19 and other communicable diseases. There are some specified human notifiable diseases covered if you are unable to use your office due to restrictions imposed by a public authority, such as legionnaires disease, but these will be specifically listed in the policy wording.

How do I get quote?

Call 0121 550 2380 for a quick quote suited to your needs, or you can request a callback. We're open 9 am to 5 pm, Monday to Friday.