Business Interruption

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Business Interruption or Consequential Loss

Business interruption (BI) Insurance covering the reduction in the gross profit or revenue as a result of a shortage in turnover due to physical loss/damages resulting from fire or other allied perils.

The business interruption policy achieves this by:

  1. Continuing to pay part of the ongoing costs and expenses which cannot be paid out of reduced income
  2. Making up the shortfall in net profit
  3. Paying for extra cost incurred in order to prevent or reduce the loss in income such as
    • overtime payments
    • the cost of provisional repairs
    • installation of temporary machinery
    • the cost of sub-contracting work
    • the cost of alternative premises

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