What sort of events would be covered by business interruption insurance? And what isn’t covered?
There are a number of events that could impact a business’s ability to trade. Those covered include:
- a fire or flood that damages key office space or important stock
- breakdown of equipment that’s fundamental to your business operations
- a key supplier is unable to reach you, damaging your ability to sell stock
If any of these things happen, your business could incur unexpected costs and the ability to generate income would be severely affected.
There are certain events that are typically excluded from general business interruption insurance, such as cyber or terrorism risks, but both of these can be covered with additional specific cover if required.
Your insurance provider will talk you through exactly what events would be covered and which ones aren’t.