Business Intrruption

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Business Interruption Risk

Business interruption insurance (also known as loss of profit) is key to corporate risk management services, covering income loss (gross profit) suffered after a disaster like fire, explosion, cyclone, or earthquake. Unlike a standard commercial property insurance policy that only covers physical physical damage, business interruption covers lost net profits, standing charges, and increased working costs. Designed to restore your financial stability, coverage can be structured standalone or bundled, protecting active operations as well as advance project loss of profits from unforeseen disasters.

Business Interruption Policy Covers

  • Profits : Based on prior months’ performance, a policy will provide reimbursement for profits that would have been earned had the event not occurred.

  • Fixed costs: These can include operating expenses and other incurred costs of doing business.

  • Temporary location: Some policies cover the costs involved with moving to and operating from a temporary business location.

  • Commission and training cost: In the wake of a business interruption event, a company will often need to replace machinery and retrain personnel on how to use the new machinery. Business interruption insurance may cover these costs.

  • Extra expenses: Business interruption insurance will provide reimbursement for reasonable expenses (beyond the fixed costs) that allow the business to continue operating while the business gets back on solid footing.

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Policy Exclusions & Non-Coverage

Broken items resulting from a covered event or loss (such as glass) Flood or earthquake damage, which are covered by a separate policy Undocumented income that’s not listed on your business’ financial records

  • Fire Loss Of Profit

  • MB Loss Of Profit

  • Advance Loss Of Profit.