Business Interuption

80% of businesses that suffer a major incident fail within the following 18 months because many business owners mistakenly believe that other insurances such as buildings and contents policies will take care of everything.

Buildings and contents policies will usually and eventually put the material damage right. However, they do not make allowances for the consequential financial losses your business will sustain in event of a long term interruption in your trading.


So, what events does business interruption cover help with? Well, there are many different causes of business interruption but two of the most common are fire and flood. A typical scenario for a flood claim won’t have anything to do with rain or burst river banks but will more likely be due to a burst pipe, collapsed water tank or surface water. In many of these scenarios by the time you arrive at work in the morning your premises will be under three feet of water!


This can be devastating to your business, with a severely flooded building taking more than six months to be habitable again.


Your stock, machinery and computers can be replaced eventually and specialist machinery can sometimes take up to two months to replace.


If you cannot operate in the interim, you will lose revenue, possibly run out of money and probably lose irreplaceable staff as well as valuable customers.


So how does Business Interruption Cover work?


Business Interruption includes a material damage proviso, which simply means that it will take affect following a claim made against your building or contents insurance.


It will cover financial losses that are a direct consequence of a business interruption, such as loss of revenue, loss of rental income and additional staff costs.


Is Business Interruption Insurance a necessity?


That of course depends on your business but not many businesses could experience a major incident with little or no impact on their ability to trade.


If you carry a lot of stock, or require substantial premises in order to operate, the Business Interruption insurance could be the only way to stay in business long enough to get back on your feet.


Equally, even the most loyal customers will have to find new suppliers when you can’t help them and while you might be trading again after a couple of months, the consequential cost of lost customers and sales in the long term could be insurmountable.


So how can you put this cover in place and calculate your Business Interruption sum insured and indemnity period?


To ensure that you receive the full benefit of Business Interruption Insurance and to get more information please don’t hesitate to call a member of our Commercial Team. They are awaiting your call and will be delighted to assist you and give you one-to-one professional advice.


Please Call: 01732 471 965

Invicta House, Amherst Hill, Riverhead, Sevenoaks, Kent, TN13 2EL
Tel: 01732 471950 Email: info@invictainsuranceservices.co.uk
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