Business Interruption Insurance

Business Interruption Insurance

One of the most important challenges facing the insurance industry is that the disastrous effects of companies not having adequate Business Interruption Insurance and an up so far Business Continuity Plan.

Interruption Insurance also referred to as BI is one of the foremost important classes of insurance any business can purchase. Additionally, the foremost common queries we get from clients in reference to BI are, what exactly is it; and in practice how does a claim get calculated and settled?

We call it “life insurance for your business” and supply a greater insight into a lesser understood area of insurance.

In practice, if a business or organisation suffers disruption caused by an insured event, that affects income and/or profitability, BI steps in to guard the organisation by continuing to pay internet profit, plus all the ongoing fixed expenses which may include but aren’t limited to the following:

Policy Response

  • Financial costs like lease payments, hire purchase and mortgage repayments
  • Rent and other fixed outgoings
  • Insurance – Keyperson, income protection, life assurance and general insurance policies like this one
  • Utilities like gas, electricity, communications and water charges
  • All other expenses of the business which will continue during the amount of disruption
Business Interruption Insurance
Business Interruption Insurance

The principle behind BI is to place the business back to the position (or as near as will allow) that might are enjoyed had the loss or disruption not occurred. The policy responds by covering the value of outgoing expenses to the business. this will include any “increased costs” the business incurs as an immediate result of the disruption.

At Digital Insurance Brokers Ni, we consider BI cover an important class necessary to guard all businesses. The statistics for businesses who don’t buy BI or who don’t update their BI represent themselves. A reported 80% enter administration within 12 months of a serious loss.

Digital Insurance Brokers Ni can provide sound advice on how best to tailor Business Interruption to your business and your requirements. We are happy to supply advice and insights on the adequacy of indemnity periods, pay-roll covers, customer dependencies and increased costs to take care of revenue