Business interruption insurance compensates you for lost income if your company has to vacate the premises due to any peril covered under your fire insurance policy, such as a fire, lightning. Business interruption insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers standing charges that continue even though business activities have come to a temporary halt.
Standard Cover
To cover for the loss of gross profit due to reduction in turnover and additional expenses incurred in minimizing the loss of turnover due to an interruption to the insured business by:
1. Fire
2. Lightning
3. Explosion of gas used for domestic purposes only.
Extra Cover upon Request
1. Special perils which are similar to those offered under the fire policy.
2. Loss of gross profit arising from business interruption in other premises. For eg: Unspecified / Specified Suppliers Premises and Specified Customers Premises.
3. Failure of supply from the public utilities in excess of 72 hours
Some Common Exclusions
The Following are not covered:
1. Loss increased by excluded perils taking place during the interruption.
2. Loss increased by restrictions imposed by the local authorities on the reconstruction or operation of the business.
3. Loss increased due to your lack of sufficient capital for timely restoration or replacement of property destroyed, damaged or lost.
Example of covers: Loss of rent on leased apartment due to fire
Cost of alternative accommodation if your home is damaged.
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