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.
Typically equipment will be insured against loss or damage and the company will be provided with employers liability insurance and public liability insurance cover too.
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)
[edit] Related articles on Designing Buildings Wiki
- Building Users' Insurance Against Latent Defects.
- Business interruption cover under COVID-19.
- Contractors' all-risk insurance.
- Contract works insurance.
- Directors and officers insurance.
- Employer's liability insurance.
- Flood insurance.
- Indemnity to principals.
- Insurance.
- Integrated project insurance.
- Latent defects insurance.
- Professional Indemnity Insurance.
- Public liability insurance.
- Residual value insurance.
Featured articles and news
How to revolutionise UK housing with MMC
CIC and Supply Chain Sustainability School unveil a plan.
From the UKs largest manufacturer and supplier of lime.
From mud bricks to smart concrete
A brief history from 7000BC to a future on the moon.
Regulator of Social Housing publishes latest fire safety report
Covering remediation of 11 metre plus social housing sector buildings.
Apartment and Duplex Defects Remediation Bill 2024
Approved for priority drafting by Government of Ireland.
The long list with in the frame of key historical events.
Competence frameworks for sustainability in the built environment
Code of practice, core criteria consultation draft for comment.
UK Net Zero Carbon Buildings Standard Sept update
Pilot version for testing and feedback on its adoption due.
New Floods Resilience Taskforce
With a wet met office autumn prediction.
National Retrofit Hub takeover of Net Zero stage
At Birmingham UK Construction Week in October.
AT Awards 2024 finalists announced
With more to come, prior to the Awards ceremony in October.
London construction cools as hotspots appear nationally
Increases in the East of England, Yorkshire and Scotland.
ARB proposals for a new Architects Code
Announced in the shadow of the final Grenfell Inquiry report.
Combining human creativity and tech innovation now and in the future
Building automation and control systems market study
BSRIA 2024 North America BACS software & services.
Impact of digital technology on productivity in construction
New CIOB academy guidance for companies of all sizes.