Business Interruption Insurance provides protection against losses of the immediate and future earning capacity of your business.
It is also known as “Loss of Profits” or ”Consequential Loss”.
Types of Business Interruption Insurance:
- Loss of Profits (following Fire & Additional Perils Insurance)
- Loss of Profits (following Machinery Breakdown Insurance)
- Industrial All Risks (combination of Material Damage & Business Interruption Insurance)
Standard Cover compensates for:
1] Loss of “Gross Profits” – This compensates the Insured for not being able to generate revenue while the premises is damaged
2] Additional Cost of Working – Additional costs incurred while trying to restore activities (ie, hiring alternative premises, contracting out to other companies)
3] Wages – Salaries paid to staff during the indemnity period
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