Compare business interruption insurance quotes

If your company is hit by a disaster that stops you trading, business interruption (BI) insurance covers the cost of your lost revenue. It’s also sometimes called ‘business income protection’.

It’s all too easy to overlook business interruption insurance if you’ve got buildings and contents cover, but it’s important to realise just how beneficial it can be.

Buildings and contents insurance will compensate you for damage caused to your property and equipment. It doesn’t cover you for ‘consequential losses’ which includes income and the cost of relocation – but business interruption insurance can.

With business interruption insurance, the types of events you can claim for will depend on the terms set out in your policy but you’ll usually be covered if:

• Your workplace is damaged or unusable because of fire, flood, vandalism
• Your business has suffered large-scale theft
• You can’t enter your workplace because the buildings or area around it are closed off (for example if there was an explosion)

Some policies cover more risks than others – for instance a few insurers will even compensate you if any of the events above are as a result of a supplier failure, which could affect your business. The important thing to ensure is that the policy you choose best reflects the risks faced by your own particular business.

BI insurance is essentially financial loss protection. It’s there to help you meet a range of expenses if your business has to temporarily stop because of an insured event (like a fire or flood). What you can claim for will depend on what you agree with your insurer but some examples include:

• Bills – even if you have to stop trading, you’re still responsible for utility bills such as gas, electricity and water.
• Loss of income – covers any lost income while you’re getting your business back in order.
• Wages – ensures you can still pay your employees even through temporary closure.
• Loan repayments – this can also include mortgage repayments so having BI insurance can ensure you don’t default on your loan. Some lenders might even insist that you have business income protection and make it a condition of their offer.

For an insurer to consider business interruption losses, typically this will be as a result of damage to or loss of property, which will need to be claimed for and will then be factored into your business interruption claims.

What’s covered by business interruption insurance really depends on the terms and conditions set out by your insurer – typical reasons for interruption include:

• Rebuilding – if your premises has suffered serious damage, it could take time to repair.
• Theft and vandalism – this can be particularly damaging if you have specialist equipment.
• Denial of access – for example, if you can’t enter your premises because the road is shut off or it’s deemed unsafe.
• Failure of utilities – if you don’t have access to water, gas or electricity.
• Supplier failure – where a supplier has let you down leaving you without stock.
• Customer failure – if a major client reneges on an order and leaves you in the lurch.
• Health and safety – this can cover a number of issues including food poisoning, infection, problems with the environment or even animal infestation.
• Police investigation – for example if someone has died and the police need to investigate.

In most cases, BI insurance won’t cover you for acts of terrorism or for a cyber-attack but you can buy separate insurance that safeguards against these and many other events.

It’s vital not to underestimate the importance of business interruption insurance – after all, mishaps and emergencies happen when you least expect, so it pays to be prepared.

Ultimately, this depends on the nature of your business. If you carry little stock, have no employees and are confident about finding affordable alternative premises to work from then you might not necessarily need BI insurance.

To put business interruption insurance into perspective, ask yourself: could I still successfully trade if an unforeseen crisis damaged my property, equipment and stock? If the answer is no then BI cover is probably worth seriously considering.

Remember – it’s not just about the physical commodities like your building and contents, it’s also about protecting the reputation of your businesses. A successful business interruption insurance claim can help you continue to trade so that you don’t lose momentum and more importantly – customer loyalty.

Business interruption insurance can be added to your overall business insurance package. All business insurance packages are tailored to your specific needs and will depend on a variety of factors including:

• How long you want cover for
• The nature of your business
• Where your business is and its local surroundings
• The amount of profit you make
• The number of employees you have

At Uswitch for Business, we understand how important your business is to you, and how closing even for just a few hours can have a negative impact. That’s why we aim to find you the right business interruption insurance at the right price – because nobody wants to pay more than they need to.

So, just tell us what you’re looking for and we’ll compare what’s on offer – all you need to do is choose a deal you like the look of. To get started give us a ring on 0800 188 4930 or leave a few details at the top of the page and we’ll call you back.