Business interruption insurance explained
The damage to a business from a fire, theft or other property damage goes beyond the immediate damage, and your business can suffer if you're unable to trade until things are fixed. Business interruption insurance is there to protect your income and make sure you can pay bills and maintain relationships with your clients and suppliers.
About business interruption insurance
What does business interruption cover do?
Business interruption insurance means peace of mind if the unexpected happens and stops your business from trading. A fire, flood or major theft could leave your premises unusable. Business interruption insurance will cover your lost income for up to 12 months as well as the increased costs of working, like renting alternative premises while your office is being repaired following a fire.
Who needs business interruption insurance?
Large or small, business interruption insurance makes sure your operation is covered for the things you can’t plan. Whether your business is office based, retail or commercial, the loss of income as a result of interruption could have a devastating effect on your business, your employees and your customers. Make sure that it's included if you take out small business insurance policy with us.
What level of business interruption cover do I need?
We provide business interruption coverage throughout the UK for lost income for up to 12 months. It includes insurance against fire, theft and vandalism that affects the ability of your business to trade at your existing premises. It also provides cover if an EU-based supplier’s premises are affected by insured damage that impacts on your ability to operate.
When business interruption insurance can help
A fire in a neighbouring building
A fire in a neighbouring building could spread or prevent access to your premises. You might have to relocate to temporary premises while repairs are carried out, or you may have to find new permanent premises due to the severity of the blaze, resulting in lost trade.
A supplier’s premises are flooded
A supplier’s premises are flooded and damaged preventing them from operating and sending key products to your business. Your business suffers because clients turn to alternative suppliers. This affects your sales and income, jeopardising your own business income as a result.
A gas explosion closes your road
Your business might not have been damaged by a gas explosion at a neighbouring business unit, but the closure of the road and access to it could be bad news. The road might be closed for days, weeks and even months. You could lose valuable sales and have to rent temporary premises.
What’s included in our cover
We’ll cover you for:
- Interruptions caused by insured damage to your property
- Physical damage near the insured premises that makes it hard to access them
- Any other incident within a one-mile radius of the insured premises that means a civil, statutory or government or public authority restricts access for more than 24 hours
- Interruption caused by damage arising at the premises of one of your customers or suppliers in the European Union
- Failure in the supply of water, gas, electricity, telecommunications or internet services for more than 24 hours because of damage to the service provider’s premises, or the networks, unless the damage is caused by flood or earth movement
- A third-party maliciously blocking access to your computer systems, programs or data for more than 12 hours, including the cost of replacing or repairing your computer system, programs and data, provided a back-up of electronic data is made at least once a week
- Electrical or mechanical breakdown of your equipment and computers, where we also cover you under the property – equipment breakdown section
Need more details?
Download a summary of what our business interruption insurance covers and the policy wording here:
- Download business interruption insurance summary of cover (PDF)
- Download business interruption insurance policy wording (PDF)
- Download business interruption insurance summary of cover - Technology (PDF)
- Download business interruption insurance policy wording - Technology (PDF)
You can also read a case study when an interruption claim supported one of our clients.
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