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Staying in Business: Why You Need Business Interruption Insurance

Running a business comes with no shortage of risks. From supply chain disruptions to natural disasters, there are many unpredictable events that could interrupt your operations and cost you revenue and profits. That's why Business Interruption Insurance is so important - it provides cover when you suffer a loss of income or profit, due to an insured event.

What is Business Interruption Insurance?

Business Interruption Insurance helps replace lost income or profit if your business is forced to temporarily close or halt some operations. It covers operating expenses like wages and finance payments during the interruption period. This ensures you can pay employees and suppliers, even if your business isn't generating income or turnover.

What events trigger Business Interruption Insurance?

Typically, it covers losses stemming from property damage, like fires, storms, theft or vandalism. Some policies may also cover losses from utility disruptions, equipment breakdowns, loss of access to your premises or interruptions at your suppliers' locations.

Consider the following when buying Business Interruption Insurance

When considering Business Interruption Insurance, pay close attention to the policy limits. Make sure the cover limit is sufficient to replace multiple months (and potentially years) of lost income or profit.

Additionally, pay attention to the indemnity period, or the maximum time the policy will reimburse lost profits and expenses. Many businesses choose at least 24 months of cover. An interruption could put you out of trading for longer than you may think.

No one wants to think about disasters interrupting their business. But being caught off guard by an insured loss could be financially devastating. Protect your company's bottom line with comprehensive Business Interruption Insurance.


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