What is covered under Business Interruption Insurance?
- Income loss your business has suffered because of being closed.
- Missed Rental payments because your property could not be used.
- Employee wages.
- Relocation expenses to change business location incorporating supplementary rent encountered for business to remain operational.
- Loan payments.
- Business taxes.
- Civil Authority orders include loss incurred by businesses when the government authority restricts access to your business premises.
What do I need to make a Business Interruption Claim?
For a business interruption insurance claim, you need to gather the following to initiate a claim:
- Income Reports
- Expenses Reports
- Employee Salary Information
- Duration Business closed
- BI Insurance Policy Terms and Conditions
It is common for insurance companies to evaluate several other documents during the process of your claim.
What are the different types of Business Insurance cover?
- Loss of gross profit
A gross profit basis is the most common type of business interruption cover in the UK. This covers the loss of net profit following a reduction in turnover, standing charges and any increases to the cost of operating.
- Loss of gross revenue
A gross revenue basis covers the decline in turnover following a loss and any increased cost of working.
- Increased cost of working
As described above, increased cost of working cover is integrated within both the gross profit and gross revenue types, where it is subject to an ‘economic limit’. Still, it can also be purchased separately, and if done so, it will not be subject to an economic limit.
What are the common Business Interruption exclusions?
- Undocumented Income
- Lack of Physical Damage
- Partial closure losses
- Cause of closure not covered
- Power outages
What should I do if my Business Interruption Insurance Claim is delayed, refused of underpaid?
As a policyholder of Business Interruption Insurance, you have certain rights. JMR Solicitors can help evaluate your policy wording and advise you on whether you have a valid claim.
Contact us on 0161 491 3933 or email firstname.lastname@example.org. We offer a 30 minute FREE* consultation to all clients.