Any business owner serious about protecting their business’s ongoing viability in the event of a loss should consider purchasing ‘business interruption insurance’.
RGIB’ specialises in arranging business interruption insurance for all types of businesses; from the smallest of shop owners to the largest of companies and every type of business in between – basically, everyone needs it but, in varying degrees of complexity.
There are various types of business interruption covers available but, in
simple terms business interruption insurance protects a business owner against losses resulting from a temporary shutdown because of a fire or other insured perils by providing reimbursement for necessary continuing business expenses and/or lost net profits – indeed, some policies will even make advance payments to help you deal with events.
Certainly, business interruption insurance is one of the most complex types of business insurance to get right; that’s why using a skilled insurance broker such as RGIB’s specialist business interruption unit is imperative because not every business derives its income in the same manner, for instance some business only require cover for necessary basics such as:-
- wages of permanent employees; including holiday pay or similar entitlements, loading or redundancy termination pay owing to an employee;
- rent, less any rebate;
- leases of trade equipment etc’.
You might even consider including ‘extra expense coverage’ in case you have to carry on business at a different location in the event your usual trading premises [shop office complex] is severely damaged resulting in rebuilding over an extended period of time. This type of extra coverage usually includes advance payments to help with your business’s relocation including that of stock and fittings etc’ as well as set-up, promotional and advertising expenses.
You can even insure for ‘Loss of Profits’ which is designed to make sure you and your business continue to enjoy profits even while you’re not trading; or trading to a lesser capacity as a result of a temporary shutdown because of a fire or other insured perils.
Getting this type of cover right is imperative because Underwriters are notorious for thoroughly investigating your pre-claim profits in the event of you making a claim – just a fact of life unfortunately; so we will usually need to liaise with your accountant to ensure you get the right level of cover that can be substantiated without argument should you make a claim.
For further information about Business Continuity Planning please click here