The primary objective of this insurance is to restore your business to the same financial position it was in prior to the incident, helping reduce the impact on operations and profitability.
Business interruption cover can be arranged in two main ways:
• Gross Profit
• Gross Revenue
Loss of Gross Revenue: Covers total income loss, including all revenue streams.
Loss of Storage & Transit Revenue: Protects income from storage charges and related transit services.
Loss of Transit Revenue: Covers income loss from removal and transit services provided to customers.
Loss of Gross Profit: Compensates for loss of actual profit compared to expected profit.
Increased Costs of Working: Covers extra costs to resume operations.
Loss of Rent Receivable: Protects rental income from tenants.
Assess which revenue types are most relevant to ensure adequate coverage and resilience against disruptions for your business. We recommend discussing your options with your insurance broker to ensure that your policy provides comprehensive protection tailored to your needs.
At Reason Global, we recommend our clients opt for coverage on a Gross Revenue basis. This method is widely regarded as the most straightforward and effective for both policyholders and insurers. It provides a clear and consistent means of calculating financial loss, simplifying the claims adjustment process.
The Indemnity Period is the maximum duration insurers reimburse losses, starting from the time of the incident until business revenue recovers to pre-loss levels. Selecting the right period requires considering worst-case scenarios, such as rebuilding after a major catastrophe.
Ensure the Indemnity Period allows sufficient time for repairs, redesign, and full operational restoration, protecting your business from extended disruptions. Key considerations may include:
It is essential to consider the scale of your operations and the risks associated with your business when determining the right level of Business Interruption coverage. For example, businesses in the removal and storage sectors may need to cover both storage and transit revenue, while self-storage operators should consider coverage based on Gross Revenue, as the core function of their business would cease in the event of a major loss.
Contact us today on 01273 739 961 to speak to a member of our team, and learn more about the appropriate protection that Business Interruption cover can provide.
Customised Insurance Plans: Every business is unique. We offer tailored insurance plans designed to meet your specific requirements. We’ll work with you to design an insurance plan that fits you.
Exceptional Support: Our friendly and knowledgeable team is always ready to assist you. We are committed to providing excellent customer service, answering all your questions, and addressing any concerns you may have.
Efficient Claims Handling: In the unfortunate event of a claim, our expert claims-handling service ensures a swift and efficient resolution, helping you get back to business as soon as possible.
As Lloyd’s brokers specialising in moving, self-storage, and relocation insurance, we’ve built a reputation for excellence. Our expert team understand how bespoke policies need to provide cover for our clients.
Our team is ready to help you understand how our Business Interruption insurance can be a valuable addition to your business. Contact us today on 01273 739 961 and take the next step towards protecting your clients.
