Business Interruption Insurance
High quality business interruption insurance, loss of profits cover, consequential loss insurance, contingent insurance and business contingency insurance!
UK Commercial offer Business Interruption quotes from the top UK contingency insurance companies, with a variety of risks and contingencies covered for all business activities.
What is Business Interruption Insurance?
Business Interruption Insurance (BI) is also known as Business Contingency Insurance, Disaster Contingency Insurance or most commonly Loss of Profits Insurance.
Its purpose is to pay to the insured business a sum of money which is equal to the profit lost by the business because of damage to property used in the business, caused by a peril that is covered in the appropriate section of the policy.
Loss of Profits Cover
All policies available at UK Commercial contain loss of profits cover as standard. The limits of indemnity and indemnity periods vary by the type of property type being insured and the BI insurance company quoting and issuing the policy.
Loss of profits covers:
a) Loss of profit in respect of turnover during the period of damage.
b) Loss of profit in respect of the increased cost of working.
Business interruption insurance therefore covers both the loss of gross profit which would have been earned by a business in sales or production and the costs of additional abnormal expenditure that eats into the gross profit following an insurable event.
Most commercial property buildings and contents and combined commercial property policies sold at UK Commercial will additionally include a fixed indemity for the costs of alternative accommodation for the business, whilst the damage is being repaired.
Why have Business Interruption Insurance?
There are numerous risks, events and incidents that could trigger a business interruption claim. Most claims will be consequential to material damage sustained to a business or immediate suppliers property, due to a cause that is covered under the policy, such as a fire. Without adequate BI cover in force a business runs the risk of closing.
If a business has its activity disrupted by an insured peril such as a flood it will need to restore normal business levels of production and sales activity as soon as possible, in order not to lose sales and customers to the competition. If you are in a small competitive niche, a period of trading loss could be disastrous.
BI protects the future goodwill of the business as well as the profits.
Specialist Business Interruption Covers
Talk to BI Insurance expert brokers for specialist risks
Larger companies and firms seeking unusual interruption and contingency risk covers, such as extended supply chain contingent insurance or credit insurance for distribution, should contact UK Commercial Insurance Brokers call centre on the number to the right, who will pass you to a specialist BI broker with Lloyds placement facilities.