Your business is more than the service you provide or the goods you produce. It’s also more than the property you operate from or the stock you hold. Your business is your means to make money, create a regular income for yourself, and to pay the bills at home. A common mistake that business owners make is to only protect the actual property and assets. But if this is damaged, your company will be unable to function as efficiently, and you might be out of pocket. This is where Business Interruption cover comes in.
What is Business Interruption Insurance?
This coverage will replace your business income in the event of a disaster.This might be due to fire damage, for example, where your warehouse or offices were destroyed. The right insurance will not only cover you for the reinstatement of the building, but also compensate you for the length of time your company was unable to function. If you are a landlord it can also cover you for loss of rent, or could provide alternative accommodation for your business.
Business Interruption Insurance won’t only pay your salary. Operating expenses, moving and renting at a temporary location, payroll, tax and loan payments may also be covered.
What is included?
There are a number of items that are – and are not – covered by Business Interruption Insurance.
✔ Profits that would have been earned if the event had not occured, based on previous performance.
✔ Fixed costs including operating expenses.
✔ Temporary location costs
✔ Commission of new machinery
✔ Additional expenses (beyond the fixed costs) to enable the business to continue trading.
✔ Employee wages
✔ Taxes and loan payments
…and what’s not
✖ Broken items such as glass
✖ Damage covered by a separate policy eg flood or earthquake
✖ Undocumented income not listed on your business’ financial records
✖ Loss resulting from pandemics, viruses or communicable diseases such as Covdi-19
Get the right level of coverage for your business
Check with your insurance broker that you have the correct policy extras in place. An essential requirement is to make sure the limits are sufficient for an adequate amount of time – you’ll likely be prevented from trading for more than just a few days. In the unfortunate event of a fire or major flood, be realistic about how long it will take to get you – and your business – back on your feet. The cost of each policy will vary depending on the kind of industry you are in – for example a bakery would have a higher risk of fire than a shop. Business Interruption Insurance is not sold as a separate policy but is available as an add-on to your existing policy.
Also check for exclusions – it may not reimburse policy holders if the business is closed due to exceptional events such as a pandemic, or if you are shut down by a local authority.
Why do you need it?
Having this coverage in place will protect your company if, for some reason, it was unable to function efficiently. Whether you are a shopkeeper, tradesman, restaurant proprietor or factory owner, if you are looking to find the best cover and price available on the market for business insurance, then look no further. We will find the best policy to suit your individual needs at the best price available. Britton Insurance quotation systems check to find the most competitive prices available to us for each and every business type of insurance cover required for our customers.