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Business Interruption

Your business operation is halted due to unforeseen circumstances.
Is there a way to recuperate the loss?

What is Business Interruption Insurance?

Business Interruption (BI) is one of the most common insurance policies due to its high importance. It allows you to recuperate a portion of your loss of income through the inability to open your business.

What does Business Interruption Insurance cover?

BI indemnifies you against loss of gross profits and/or increased cost of working arising as a result of damage to the your premises/property from any perils insured by the underlying Industrial All Risks Policy:

  • Loss of revenue: Revenue you would have made if your business was open.
  • Mortgage, rent and lease payments: For the space your business operates from.
  • Loan payments: Such payments that you need to make in those period.
  • Taxes: Regardless of the frequency you pay.
  • Payroll for your employees: Salaries of your workers in those period should they cannot work.
  • Relocation costs: Costs of moving to new or temporary location because of physical damages.
  • Extra expenses: Costs such as renting another place to run your business after a covered loss.
  • Training costs: Costs of teaching new employees how to use new machineries and equipments after a covered loss.

Is Business Interruption Insurance important?

Expect the unexpected. You never know what may cause your business to be unoperational, yet it is not a policy that is generally prioritized. BI is often overlooked due to business’ tendencies to take interests in protecting contents and properties, yet in reality there are other costs that can continue to incur when those aforementioned assets get damaged. ฺA BI policy can cover for the period of profits or income that you miss out on and continued expenses such as rent, loans and leases. Ultimately, this could be the difference between survival and closure. 

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Who needs Business Interruption Insurance?

BI is applicable to almost every industry. If your business can suddenly close and lose profits due to unforeseen circumstances, you are likely going to need BI.

How much does a Business Interruption policy cost?

There are a number of factors that insurers take into account when determining the price of a BI policy, including:

  • Industry
  • Number of employees
  • Coverage limit

When deciding a coverage limit, it is important to consider the different circumstances that can put a halt in the services that your business provides. Careful evaluation in the length of time it takes to get the business up and running again after a problem such as fire, the strength of your security system and the costs needed to rent during the hiatus can provide an understanding of the depth of coverage needed.

Why CHAZ?

Our deep expertise from a wide range of industries can guide you through and provide recommendations on not only optimum and cost-effective limits, but also the potential pitfalls that may impact your business, including the ways to avoid underinsurance problems.

Important Disclosure

The content provided is for informational and educational purposes only. The coverage written may not be applicable to all situations and policies. Terms, conditions and qualifications are also subject to circumstance and supplementary material. For more information, please contact us via the enquiry form below..

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