FAQs - Business Interruption insurance

Business Interruption insurance is designed to put you into the financial position as if the claim had never happened. As such, the indemnity period needs to be long enough to get you back trading at the same level as if the loss had not occurred.  Whilst property can be replaced or rebuilt relatively quickly, it may take much longer to recover the same level of sales and market share.  Surveys have shown that most businesses do not have adequate indemnity periods.  As a rough guide, we rarely recommend anything less than 24 months.

The amount of cover you need will depend on a number of factors, including the size of your business, typical monthly turnover and how long you estimate it would take to get back up and running if you were impacted by an event such as a flood or fire.

It’s estimated that almost half of those businesses with Business Interruption insurance don’t have enough cover so our recommendation, as with other insurances, is to buy as much as you can afford.

We have access to a tool that enables us to calculate how much BI insurance your business might need so it’s worth having a conversation before you go ahead and buy it.

Because Business Interruption cover isn’t protecting a physical business asset, this is often overlooked when businesses are thinking about what business insurance they need. However, depending on how long your business is unable to trade, this can be the most valuable insurance of all and can amount to quite a large pay out.

Business Interruption insurance covers you for loss of income during a period of time when you are unable to trade because of an unexpected event, such as a flood or fire.

The aim of Business Interruption insurance is to put your business back in the position it was before the event happened and as though it didn’t happen in the first place.