Business interruption insurance

Business interruption insurance covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected event.

Business interruption insurance aims to put your business back in the same trading position it was in before the event occurred.

Most policies will cover business interruption as a result of:

• damage caused to your premises or equipment by fire, storm or flooding
• the breakdown of essential equipment

Some policies will also cover business interruption as a result of:

• people not being able to get into your business premises
• damage occurring at the premises of a supplier or customer

Specialist policies, which are sold separately, are available to insure your business’s computers against viruses, hackers and other cyber risks.

Making a claim:

If you make a claim business interruption insurance will compensate you for:

• any (pre-tax) shortfall in profits
• any increased costs of running your business as a result of the event, for example any extra accountants’ fees you might have to pay

Buying business interruption insurance:

Business interruption insurance is often included in, or offered as an optional extra to, business insurance packages which combine a number of different policies under one premium. It can also be offered as an optional extra to buildings and contents insurance policies.