Understanding business interruption insurance
Protect your businesses gross profit or revenue in the event of disasters
An unforeseen disaster is every business owner’s nightmare. It can take days, weeks, months or sometimes years to recover fully from a business loss or disaster, but things can be made easier. With a business interruption insurance policy we can help you get back on track if something does go wrong. So rest assured your businesses revenue is protected in the event you suffer a loss of income and/ or increased costs of working due to a disaster. With this specialised cover in place you’ll get the help you need to get your business up and running again as soon as possible.
What is Business Interruption Insurance?
Business interruption insurance covers you in the event that your business has suffered a loss of income due to a disaster or loss, in unforeseen circumstances. You may for example find your company has to vacate its premises following a disaster such as a fire, in which case having a Business Interruption policy in place will reimburse your business for the revenue you would have otherwise earned, were it not for the disaster happening. The policy is based on your previous financial records and estimated future annual turnover, and will help you cover various operational expenditures such as gas, electricity, that might still be due.
Our business interruption cover typically covers the following:
Profit: Any profits that would have been earned during the time that that business is out of action.
Disruption: Any power, telecommunications & water disruption costs caused by service providers.
Fixed costs: Any ongoing and continuous operating costs that you incur even though the business is not operating, which is based on historical cost reports.
Temporary location: The expenses you may suffer due to having to relocate or operate from a temporary location.
Some additional expenses: With the reimbursement of ‘reasonable expenses’ that enable the business to continue its operations whilst the property is being repaired.
Types of businesses we cover
Our business interruption cover is suitable for a wide range of business types such as: Shops, Cafés, Tradesman, Professionals, Pubs, Takeaways and much more. Speak to one of our insurance specialists to discuss your businesses individual needs.
Business interruption specialists
We offer a bespoke service focused around designing tailored cover for your business, ensuring you get the right cover you need. Our insurance experts will discuss your business needs with you and look to compare quotes from major UK insurance providers. We can often provide you with your business insurance and documents on the same day and offer a wide range of flexible payment options to suit you.
Do I need business interruption insurance?
Some business owners often assume that other insurance covers, such as buildings and contents, will cover loss of income following a disaster at their business. However this is not the case, only business interruption cover provides protection for financial losses sustained as a result of the initial damage sustained. Our business Interruption Insurance is solely sold as an add-on cover. It can therefore be added alongside core covers such as public liability and employer’s liability cover.
Why choose us for your Business Interruption Insurance?
We proudly make buying insurance different and our cover comes with a range of benefits.
Easy claims process
Accidents can happen, so when something does go wrong you can rest easy knowing our team is on hand to make the claims process as quick and stress free as possible.
Octopus customer rewards
We pride ourselves on the value we offer our customers, and with Octopus Customer rewards we give our customers a few additional benefits to their insurance such as discounts and offers to save them money.
No mid term fees, ever
We don’t charge any mid-term fees at all during the life of your policy – so there are no hidden fees following any changes you might need to make.
How business interruption insurance works
Examples of business interruption cover in action
A case of arson
An estate agent rents a space next door to a bookmaker in a busy city location. One weekend after closing, the bookmaker is set upon by an arsonist who turned out to be a disgruntled customer. The arsonist manages to cause significant damage to the bookmakers and adjacent buildings with the fire spreading to surrounding buildings including the estate agents who operate out of the property next door. The business can no longer operate from these premises while repairs are made to the building. But while the business can be set up at a different location fairly easily, they’re forced to relocate to a less prominent location, further out of town which has led to a big drop in revenue for the business. Because the estate agents have Business Interruption cover in place the business is able to claim for the loss in revenue caused due to relocating as a consequence of the fire at the neighbouring property until they are able to re-occupy their previous premises.
A £30,000 summer disaster
Following a burst water pipe that causes extensive water damage, a pub in a popular tourist destination has to close over the busy summer season for renovations. This means that their annual profits are severely affected and they lose out on a big chunk of their usual custom. Luckily, they had adequate Business Interruption Insurance in place to cover them to the tune of £50,000. This means that they can afford to stay in business and be ready to open up again later that year.