Business Interruption

Loss of income and increased expenses due to damage to fixed assets.

This section is also known as loss of profits. It covers the loss of your gross profits following a claim under either the fire & perils or theft sections. Cover can also be included for any additional costs incurred as well as professional fees to prepare your claim. Note that failure to insure for the full value can result in a claim being reduced.

Gross Profit sum insured – Means net profit plus the total of all expenses which will not diminish proportionally with a reduction in turnover (eg. purchases).

It is important that you forecast at least 12 months ahead. Regular reviews should also be made. The indemnity period chosen should reflect the time period your business would need to recover from a total loss.

Indemnity Period – This refers to the period between the date of damage, and when the business has regained normal trading patterns.

Additional / Increased Cost of Working – The increased costs incurred after a property damage loss, necessary to limit any further reduction in turnover or revenue, and to maintain normal business operations. These expenses could include such items as hiring alternate premises, temporary staff, additional freight etc. (Most policies limit the amount they will pay for these costs to the amount that is being saved in turnover or revenue – i.e. you cannot spend more than a dollar to save a dollar).

Capital Insurance Brokers will help you select the right Business Interruption Insurance solution to meet your needs. We take the guess work out of insurance for you. Call us on (02) 6282 7666 to speak with one of our Account Managers or start now and request an insurance quote.