Business Interruption Insurance
A typical 'commercial combined' insurance policy taken out by a business will have a number of sections which provide cover for both 'material damage' and 'liability' events.
Business interruption cover is often provided as well. This covers the additional expenses incurred by a business following loss or damage. Cover is usually on an 'all risks' basis and can be extended to cover loss of income.
Events that may be covered include:
- Enforced closure of premises due to a notifiable infectious disease at the premises.
- Damage to property in the vicinity of the premises which hinders or prevents access to the premises.
- Damage at a supplier’s premises.
- Accidental failure of telecommunications at the premises lasting at least 24 hours.
- Accidental failure of public supplies of electricity, gas or water lasting at least 30 minutes.
- Damage to documents in transit.
Loss of income is a significant risk where an event has caused major disruption to a business so cover is available for a maximum indemnity period which insures an agreed and justifiable estimate of loss. If, for example, a business is unable to trade for three months due to a major event then loss of income cover reimburses the amount of income agreed as being lost during that three month period.
This article was written by: --Martinc 08:30, 23 July 2014 (BST)
 Related articles on Designing Buildings Wiki
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- Contract works insurance.
- Directors and officers insurance.
- Employer's liability insurance.
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- Indemnity to principals.
- Integrated project insurance.
- Latent defects insurance.
- Professional Indemnity Insurance.
- Public liability insurance.
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