Business Interruption

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This product would normally cover loss of Gross Profit following a reduction in Turnover resulting from, and occurring after, damage to an Insured property.

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The Gross Profit indemnity enables a business to pay its fixed standing charges including payroll and recover its net profit during the Indemnity Period.

The Indemnity Period is selected by the policyholder and represents the period that it is believed will be required to return the business profit to normal following a loss.

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These periods are normally 12, 18, 24 and 36 months.

 

Increased Cost of Working is a critical feature in business interruption insurance policies: this may involve something like renting alternative premises whilst repairs are undertaken on the insured premises. This extension would be limited so that the costs incurred did not exceed the amount of loss that they were avoiding.

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Extensions are also available to provide protection in the event of damage to customers’ or suppliers’ premises.