Business Interruption Insurance
If your business operations are interrupted, it could put significant financial strain on your business. Business Interruption Insurance covers the loss of business income due to interruption and is vital to ensure your business is able to continue to meet its ongoing costs and generate income despite having its operations interrupted.
Business Interruption (BI) policies have one of the worst, if not the very highest, incidence of under insurance of all the classes of general insurance. This is concerning given that every year 1 in 500 businesses will experience a severe disaster, and 43% of businesses that experience disasters never re-open and 29% close within 2 years (LMI Group, McGladrey and Pullen). Failing to adjust the value of your BI insurance policy in line with the evolution of your business can have disastrous consequences in the event of a loss. Ensure your nsurance broker is re-evaluating your financial position annually so that you are properly covered.