Business interruption insurance provides financial protection to the business following a property damage loss. 60% of businesses fail following a significant fire, this has never been the case of any of our clients.
What is covered? The loss in gross profit or gross revenue and additional costs and expenses incurred to restore the business to the same financial position enjoyed prior to the loss.
When arranging cover for our clients, due consideration is given to:
- Basis of cover – Ensuring the specification is correct. Gross profit, gross revenue, net revenue, increase in cost of working and other variations are discussed with our clients to ensure the business continues post loss
- Indemnity period – 12 months is the standard provided by most policies and generally inappropriate. Factors such as replacement machinery lead times, availability of alternative premises, supplies of raw materials will dictate the indemnity period
- Customers and suppliers – Cover can be purchased for business interruption following damage to a supplier or customers premises. We have a number of clients who rely on suppliers based outside the UK for whom cover is purchased
- Terrorism – Although incidents are uncommon, when they do occur, evacuation and investigations can lead to the closure of neighbouring businesses for a prolonged period. We were able to reimburse clients who suffered as a result of the failed bombing in an Exeter cafe in 2008
- Public utilities – Cover can be arranged for full failure of utilities which is particularly important for manufacturers
- Disaster recovery plan – What will you do in the event of a major loss? Who will you call? Where are the documents you need to begin to rebuild your business?
Castlemead Insurance Brokers have the knowledge, experience and market connections required to competitively place the required cover for your business.