Protect Your Business with Business Interruption Insurance

Business interruption insurance is a typical policy which ensures to provide any business or company required funds for making up the difference of normal income and the income at the time of closing down of business.

Due to some unwanted reasons a business may need to close down or reduce the volume of operation of the business. It can be due to any accident or disability of business owner or key-man, loss of property or for any type of legal liability or unforeseen situations.

This insurance is especially designed for bringing back the business in secured position which was before the occurrence of loss. The cover provided by this insurance starts from date of occurrence of loss till the time turnover of the business is back to pre-loss level.

Cover a business can get from this Insurance policy:

• Continuous expenses related to payroll, fixed costs, current costs.
• Cover for operations related to Revenue earning, supply chain and process of manufacturing.
• Cover for discontinuity  caused due to service providers of power, water and telecommunications.
• The Added cost to expedite the process of returning to normal phase of business operations

Property insurance Vs Insurance for Business interruption:

Property Insurance acts towards giving a cover to any physical damage caused to business. Insurance for Business Interruption provides cover to profits that a business could have earned in case the business operates in normal pace without facing any loss. This insurance is planned to put back the business in a previous financial condition where it was when there was no loss caused to it.


A brief on the areas covered by the insurance:

• Profit: Earning of profit missed by the business due to interruption in business for any unforeseen conditions.

• Fixed Costs: By Fixed cost here we mean the operating expenses as well as costs which will be incurred even in the condition when business is not performing.

• Temporary Location: The expenditure made for moving the business, for operating from; a different location for a temporary period till the business is back in shape.

• Disruption: Covering of expenditure related to disruption caused by the different service providers of business.

• Extra Expenses: Expenses to be made over and above the regular costs of business to set up the business in the old format which was before the occurrence of the disruption

Insurance for covering loss due to Business Interruption is not made available in the form of stand-alone policy. It can be availed as an addition on for Property Insurance Cover for business or can also be availed as comprehensive policies in a package.

Taking assistance of the experienced broker firms to avail Business interruption insurance will be the right decision and you can bank on the services of Mckenzieross.