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:

  • Continuing to pay that part of the ongoing costs and expenses which cannot be paid out of the reduced income
  • Making up the shortfall in net profit
  • 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.
Ahmed Abdullah, Lahore

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