Business interruption cover protects gross profit or gross revenue after an insured event such as fire or storm damage disrupts the business. It is usually triggered by insured physical damage under the property section; it does not cover every cause of lost turnover. The sum insured and indemnity period must allow for a realistic rebuild and customer recovery period.
A fire damages a panel beater’s spray booth and smoke contaminates the workshop. Repairs, municipal approvals and replacement equipment take eight months.
How cover may respond: Following an accepted fire claim, business interruption may fund lost insured gross profit and reasonable temporary outsourcing costs during the indemnity period.
Important: A three-month indemnity period would be inadequate even if the property sum insured was correct.
Tell us what vehicles you handle, where they are kept and how they are used. A specialist can compare suitable terms and explain the important conditions before you bind cover.
Start my quotationThis is a general explanation, not advice or a policy contract. Cover is subject to the insurer’s schedule, wording, limits, excesses and conditions.