Business interruption insurance

If something such as a fire, flood, or storms occurs and renders your business unable to trade then you’ll be losing money. This not only effects your business’ profits, but also your ability to pay your employees and any bills and fixed costs – such as rent, utilities etc.

Business interruption protects you if your business has lost money due to an unexpected event leaving business unable to operate. Specifically, it covers any income lost in these events.

Business interruption isn’t a cover that can be purchased as a standalone, rather an optional cover that can be added to your policy if you have contents insurance. You’ll pay for this cover as part of your overall price if you choose to add it.

What does business interruption cover?

What’s covered:

• Covers you for the loss of profits that would have been earned had the event not occurred as well any fixed costs such as operating expenses and other incurred business costs
• Covers you for the cost of employee wages over the period the business is out of operation
• Interruption of, or interference caused by, the failure of the public supply of electricity, gas, water, or communication services
• Interruption caused as a result of certain contagious diseases on your premises
• Interruption caused by the discovery of death (i.e., murder or suicide) at your premises
• We will pay you for reasonable charges payable by you to your professional accountants (subject to suitable proof)
• Cover if you’re unable to trade due to interference on your supplier’s side (e.g. your suppliers’ premises suffers a fire or a break in)

What’s not covered:

• Any incident involving interference or interruption that is less than 12 hours duration
• A loss of electricity, gas, water, or communication services that was caused intentionally by the supplier
• Strikes or any labour or trade disputes
• Solar flare or other atmospheric or weather conditions (but we will cover failure due to damage to equipment caused by these conditions)
• Interruption caused by diseases originating from the larger geographical area surrounding your premises

The business interruption indemnity period is the period when your business activity has been impacted, starting on the date the damage. The maximum indemnity period will vary depending on the event you’re insuring against since you’ll need to consider how long it takes to get back on your feet – from day 1 right through to business being back to normal.

Business activity refers to the different activities that your business carries out to make money. These activities will vary depending on your occupation.

Business interruption insurance is an optional additional cover that can be added to your business insurance package. This cover has a minimum premium of £50.

To find out how much your policy will cost you can get a quote – plus, get your quote online and save 10%* off the cost of your policy.

• Your occupation
• Where you complete your work
• How you work
• How many staff you have
• Your turnover

*This discount is applied automatically and lasts for the lifetime of your policy.