Business Interruption Insurance is one of the most important insurances there is when it comes to protecting your business. In the first of this new four-part series, Account Manager Nicholas Marshall explains what Business Interruption (BI) Insurance is and why it is so important for Moving & Storage businesses.
Business Interruption (BI), also known as ‘Consequential Loss Insurance’ covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected event such as fire or flooding, which can occur through malicious or accidental means. Business interruption insurance aims to put your business back in the same trading position as it was in before the event occurred.
In the main, there are two ways in which you can arrange Business Interruption Cover: one way is on a Gross Profit, and the other is on a Gross Revenue basis. Here at Reason Global we recommend that our clients insure on a Gross Revenue basis; as this is the recommended method to calculate and should a claim arise it is the simplest method for all parties when it comes to adjusting the claim.
According to recent data from insurance experts, an estimated 40 per cent of businesses never re-open after a disaster. With this in mind, it is important that the right steps are undertaken to protect your business in the face of a major catastrophe. One such step is to ensure that you have Business Interruption cover and that the cover placed is adequate.
The impact of Business Interruption risks can be varied; therefore, it is important to check that your Policy covers all potential risks, including:
In part two of this series, Nicholas explains how to calculate your Business Interruption sum insured.
If you have any questions about Business Interruption Insurance, call us today on 01273 739 961 or get in touch here.
