IF YOUR BUSINESS HAS TO STOP TRADING UNEXPECTEDLY, MAKE SURE YOU’RE FINANCIALLY SUPPORTED WITH BUSINESS INTERRUPTION INSURANCE.

There are many things that could unexpectedly stop your business from trading. Fire, flood or theft could leave your premises unusable – but what about non-physical damage too? This includes internet outages, cyber attacks and much more.

If your business had to stop trading, how long could you stay afloat before falling into financial difficulty? Business Interruption Insurance is there to support you if something does go wrong and you’re unable to trade for a while. It gives you the financial backing to help get your business back up on its feet again.

According to the Building Cost Information Service, 40% of businesses don’t have enough Business Interruption cover. That’s why it’s important to work with a reputable broker who will ensure your business is protected. We’ll get to know your business, assess your risks and make sure your policy will provide the cover you need should the worst happen.

We understand that Business Interruption Insurance can be confusing, and Policy Wordings difficult to navigate. Don’t worry, we’re on your side.

Business interruption insurance, is cover that helps you financially should something unexpectedly stop your business from trading, such as insured damage to your property. This could be for a number of reasons, but largely arise from fire, flood, or major theft, all of which could leave your premises unusable for your business.

When this happens, Business Interruption insurance will kick in, supporting you with funds to help you get your business back on its feet, and continue trading whilst you build your business back up to it’s fully operational capacity.

How to avoid under-insuring for Business Interruption

When considering how to protect yourself, the first thing to consider is your gross profit or revenue. Your Business Interruption Insurance should accurately reflect these numbers, otherwise, you’ll inevitably be left with a shortfall should the worst happen. You should also pay close attention to how long you think it will take to get your business back on its feet after a loss. This period, called the indemnity period, will be how long your business interruption insurance will pay out for in the event of a claim.

Be very careful to check your indemnity period on any business interruption policy. Because periods offered by ‘standard’ policies or online quotes are frequently insufficient for most businesses.

Two years is likely to be a minimum period  for a business to fully recover its trading level. It’s sensible to be cautious about the speed of your recovery, and take into account how much control you have over the recovery. You may be dependent on third parties who could slow you down more than you think.

Plenty businesses don’t have enough business interruption cover to get them back on their feet.

That’s according to the Building Cost Information Service. And that’s a frighteningly high number. Business Interruption is one of the key ways a business could fail in the event of a major incident. So don’t let you, your business, and your staff become a statistic. Take the time to interrogate your insurance policy, and make sure that you’re safe should the worst happen.