Business interruption insurance

Business interruption isn’t a legal requirement so therefore it is up to the key decision holders to opt to include this within their commercial business package.

The purpose of this cover is to safeguard your organisation against the potential financial losses and/or additional costs you could incur if your ability to operate is affected by an unforeseen event, such as a fire, flood or electrical failure.

For example, if a premises were to be flooded or wiped out by a fire, and the business was unable to trade as a consequence, then business interruption insurance would cover the financial losses incurred (whether that be a loss of profit or an additional expenditure to be able to trade elsewhere), until the business was up and running and back up to the same levels of trading and standards as before the incident.

Yes, we can. You don’t need to be a direct victim of a crisis for it to impact your business and its ability to trade as normal. Whether your productivity is dependent on internal assets or external assets (in the UK or abroad), we can help you source cover that helps to protect your business should any of these vitals suffer a serious setback.

If you have landlord insurance, you’ll need to check to see if rental income protection is included. This is a form of business interruption insurance that applies to landlords specifically, protecting your loss in rental payments if your premises is damaged or otherwise unable to be rented out.

The cost of BI is determined by numerous factors, such as:

• Type of trade 
• Levels of cover (£) 
• Indemnity period (12, 24 or 36 months)
• Number of employees
• Any uninsured working expenses (e.g. materials, goods for re-sale) any additional considerations needed (e.g. insuring stakeholder premises, property in transit)
• Claims history 

HMRC state that in most situations, where the premium is deductible, any receipts paid out under the policy will be taxable.1