Business Interruption

Have you considered what would happened if your business was totally decimated by a fire? Business Interruption cover is essentially design to ensure businesses interrupted by certain inured events (like Fire and Storm), are able to survive, as the policy looks to provide you with indemnity for the reduction in your Gross Profit/Revenue.

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Suppose a fire on your premises forces you to close your doors while you rebuild your business.

  • How long would it take to rebuild your business?
  • What is the value of the assets that could be destroyed?
  • What are the operational expenses you would still be liable for while you rebuild your business?
  • Consider salaries, loan repayments and taxes. How much income would be lost during the time it takes to rebuild?
  • Will there be additional expenses, such as temporary business facilities?

If you do not have sufficient resources to cover these costs, it could mean the ruin of your business. Business interruption insurance protects a business owner against a reduction in Turnover resulting from a temporary or total business shutdown as a result of an Insured Peril (Fire & Natural Perils).

When discussing your Business Interruption insurance, make sure you talk to an experienced insurance professional. This could mean the difference between business survival or closure.

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