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Business Interruption Insurance is designed to protect businesses from the loss of income that may occur after a catastrophic event. This type of coverage is crucial for helping a business recover from a temporary closure or slowdown by covering ongoing expenses and lost profits.
What is Typically Covered:
Lost Income: Compensation for the revenue your business would have earned during the period it is out of operation due to a covered loss.
Operating Expenses: Coverage for fixed costs that continue even when business operations are temporarily halted, such as rent and utilities.
Relocation Costs: If your business needs to move to a temporary location while the primary premises are being repaired, these expenses may be covered.
Employee Wages: Ensures that you can pay your employees and retain staff while your business is not operational.
Loan Payments: Coverage for any business loan payments that are due while your business is not generating its normal income.
Taxes: Provides for the payment of taxes that come due while your business is interrupted.
What is Not Typically Covered:
Closure Due to Pandemic: Many policies exclude losses due to pandemics or infectious diseases unless specifically endorsed.
Undocumented Income: Income that cannot be verified through financial records is typically not covered.
Partial Closures: Some policies may not cover losses unless the business is completely shut down.
Utility Failure: If the interruption is due to a failure of utility service outside of your property, it may not be covered unless specifically endorsed.
Flood or Earthquake Damage: These events often require separate policies for coverage.
Interruptions Due to Strikes or Labor Disputes: These are typically excluded from standard coverage.
The Broad Risk Difference
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"You First" Principle
Your business comes first. We align our services with your values and needs, providing expert advice and insurance protection that allows you to focus on what matters most—growing your business with peace of mind.
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Accountability
We take full responsibility for the services and recommendations we provide. Every action is designed to deliver results, fostering trusted, long-term relationships with our clients. Your satisfaction and security are at the forefront of everything we do.
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Expert Solutions
With over 15 years of experience, we specialise in delivering tailored advice and solutions to protect your business. We customise our offerings to your unique needs, ensuring comprehensive coverage and peace of mind.
Frequently Asked Questions
1. What exactly does Business Interruption Insurance cover?
It covers the loss of income and operating expenses when a business must temporarily close or significantly reduce operations due to a covered event.
2. Is Business Interruption Insurance required by law?
No, it is not legally required, but it can be critically important for the survival of a business after a major loss.
3. How is the amount of coverage determined for Business Interruption Insurance?
Coverage is typically based on your business's past financial records and projected income.
4. Does Business Interruption Insurance cover losses due to COVID-19?
Coverage for infectious diseases like COVID-19 is not typically included in standard policies and may require specific coverage or endorsements.
5. How long does Business Interruption Insurance take to kick in after a loss?
There is usually a waiting period, or "time deductible," that specifies how long after the initial loss the coverage will begin to apply. This period can vary by policy.
6. Can I purchase Business Interruption Insurance on its own?
Business Interruption Insurance is usually not sold as a standalone policy but is added to a property/casualty policy or included in a comprehensive package policy.