Many businesses fail to recover from a major event such as fire, storm or earthquake as overheads (such as wages and rent) continue even though the business may be unable to trade
Business Interruption provides cover for consequential loss of income and/or profits or revenue resulting from the interruption of, or interference with your business caused by damage covered under the Fire and Perils, Theft, Money or Glass sections.
Cover options available include:
Business Income Protection: provides cover for weekly income, additional expenses such as relocation costs, expediting expenses and claims preparation expenses incurred due to a defined event. As this cover provides “weekly cash flow”, it is suitable for one or two person service operations that maintain minor supplies of Stock in Trade. Your business expenses should not be significant when compared to income.
Consequential Loss of Profits: provides cover for gross profit, payroll and claims preparation expenses incurred due to a defined event. This cover is for business’ that require a lead-time to get back into business and trade at the same level as before the loss. These businesses will have higher expense ratios as they may have a significant Stock in Trade. Typically, they will have a number of employees.