Business Interruption Cover – What Is It And Do You Need It?
A lot of businesses are under-insured, and one of the main reasons for this is that they don’t understand all the different types of insurance available to them. One type of insurance that is often overlooked is business interruption cover. So, what is business interruption cover and do you need it?
January 12th, 2023
What is business interruption cover?
Business interruption cover is a type of insurance that covers the loss of income a business suffers as a result of being unable to trade due to an insured event. Insured events can include things like fire, flood, or theft.
Do you need business interruption cover?
The answer to this question depends on a number of factors. One factor to consider is the size of your business. If your business is large and has complex operations, then the loss of income from not being able to trade could be significant. In this case, it would make sense to have business interruption cover in place.
Another factor to consider is whether your business has any dependencies on other businesses. For example, if your business relies on another business for raw materials, and that other business is unable to trade due to an insured event, then your business may also be affected. In this case, having business interruption cover would protect you from loss of income.
Business interruption cover is a type of insurance that covers the loss of income a business suffers as a result of being unable to trade due to an insured event. Whether or not you need this type of insurance depends on a number of factors, including the size and complexity of your operations, and whether your business has any dependencies on other businesses. If you’re not sure whether or not you need business interruption cover, speak to your insurance broker who will be able to advise you further.