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Compare business interruption insurance

Compare business interruption insurance

When a business experiences a crisis that leaves it unable to operate for a period, the fallout can be catastrophic.

Business interruption insurance aims to help your business cope with a crisis by recovering the profits lost by being out of action.

Emily Kindness
From the Business team
minute read
Do you know someone who could benefit from this article?
Posted 23 MARCH 2020

What is business interruption insurance?

It’s a special kind of business insurance that can help compensate you for loss of sales or profits if your business is unable to operate for a period for some unexpected reason.

It aims to put your business back in the same trading position as it would have been had the unfortunate events not happened in the first place.

While several types of insurance have been impacted by the outbreak of coronavirus, business interruption insurance is currently available. If you buy a new business insurance policy, it’s unlikely to cover claims against events that are already taking place. This means COVID-19-related claims are unlikely to be covered. We will keep this page updated as regularly as possible, but you can find out more information by clicking on the button below. 

Find more information on business insurance and coronavirus here

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.

Why would I need business interruption insurance on top of my other business insurance?

Although losses to your business such as buildings, fixtures, fittings and stock are often covered under a standard buildings and contents policy, such cover will only help you replace or fix what’s broken, not recover lost income and compensate for unexpected costs.  

What do I need to do in order to claim?

You’ll need to provide substantiated evidence of your business’s trading performance so that your insurance provider can accurately calculate your premium and, if need be, any potential payouts.

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