As the name suggests, Business Interruption Insurance covers you for loss of revenue if your business is temporarily out of action as a result of an insured event, such as a fire, flood or earthquake.  Business Interruption Insurance allows you to continue meeting your ongoing expenses, whilst protecting the gross profit of your business.  

This coverage is crucial, as it can reduce the worry of any additional expenses caused by the interruption.  The aim of Business Interruption Insurance is to allow your business to be in the same financial position it was prior to the occurrence that affected its trading.

A Business Interruption Insurance Policy will typically cover the following:

• Profit:  Any profit that would have been earned during the time the business is not able to trade.
• Pay wages, creditors, rent
• Fixed Costs:  Covers the operating costs and expenses that will continue to be incurred  even though the business is not operating.
• Prevention or hindrance of access to your property caused by an insured event .
• Claims preparation costs ( such as accountants and auditors fees).
• Landlords loss of rent - when tenants can't occupy a building.
• Temporary location:  Expenses that may be incurred if moving to a temporary location.
• Pay for fixed personal expenses:  Such as home loans, schooling, rates .....

Business Interruption Insurance will also respond to any partial losses and supplements any drop in your income caused by an insurable event, which hinders your ability to trade.

Please do note, however:  Machinery breakdown will not trigger a business claim, even if your business is dependent on machinery for its income.  If this is indeed the protection you need, you will need to look at incorporating Business Interruption Insurance under your Machinery Breakdown section.

The amount you need to insure depends on calculating the correct sum insured. This is vital as this section contains an under insurance claim.  This allows insurance companies to reduce claim payments if your business is under insured.

We suggest you consult the services of our professional insurance brokers to establish this calculation.

The above fore mentioned are basic coverages that we offer.  Additional coverage options are available and can be customised to meet your company's needs.  To learn more about our Business Interruption Insurance, or to discuss the coverage that would be most appropriate for your company, please contact one of our brokers at Abraham Insurance.