Business Interruption Insurance
Product Description
Companies can be exposed to perils that are beyond their control and that can cause not only critical damage / loss of tangible assets, but also suspension of operations and threat to the viability of the business. During the time required for recovery and resuming of the operations, the affected company may lose profits, which it would otherwise have earned. Business interruption or business income insurance offers an excellent solution in covering the company’s emergency costs and loss of income
A business interruption insurance policy provides compensation for any revenue loss and increase in fixed costs or extra expenses caused by a temporary operational/business shutdown.
Business interruption insurance provides coverage for
- Loss of profits (for example, loss of rental income)
- Continuing expenses (salaries, social security payments, rents, taxes and fees, interest on loans, depreciation allowances)
It should be remembered that business interruption insurance covers only the damage caused by the events stipulated by property insurance and / or machinery and equipment breakdown insurance policies.
The amount of coverage is an important issue that needs competent assessment and understanding of specifics of the insured’s business and industry-related earnings.
This type of extended insurance coverage offers the following benefits
- Monetary compensation for the losses incurred through the events insured on a property insurance policy
- Customized approach tailored to the type of the client’s business
- Coverage extends from the first days of business shut down through the restoration period until the operations can be resumed