Business interruption cover – what is it and why you need it?

If you think of the cover you may have for your business like liability or fire cover, it is relatively easy to see how a claim can occur. But often the enemy after an incident or a claim is time. After a fire in your premises for example, the process to get back to where you were can take a lot of time.

For example, the reasons for fire are not often obvious so an insurer may need to take a number of months to investigate what has happened. Once the claim has been admitted, you will need to apply for planning permission which can take up to 12 months. Then comes the build and the need to find a builder and order machinery. It isn’t uncommon for the process to take up to 2 years.

During all of this time, you may not have the ability to earn any income for you or your business. And though your claim may eventually be paid, you may have run out of money by then.

BI Cover keeps you afloat whilst the claim is proceeding.

If you have Business interruption cover included on your policy, the insurer will pay you an income whilst you are unable to operate. Depending on the cover you select and that is available, this might be in the form of paying to move to another premises whilst you are getting back  on your feet (often called increased cost of working cover) or it may be in the form of paying you your gross profit from the previous year.

Business interruption cover has made some headlines in recent years during the lock down but some businesses still believe that it is an optional extra on their policies, whilst in truth it should be the bedrock of your cover. Some businesses may have cover but only for 6 or 12 months when it should be for 24 months if available.

If you would like some additional information on business interruption cover contact the experts on (061)226722 or