Business interruption insurance replaces the income and meets the costs when your business is halted by an insured event, such as a fire or flood at your premises. It is what turns a property claim into survival.
What it covers
After a physical damage event, the policy pays lost revenue and ongoing costs such as wages and rent, for a set indemnity period, until you are back to normal trading. It is usually added to a business or property policy. Our guide to reading your policy shows the indemnity period and limits.
What to watch
Cover is triggered by physical damage at the premises in standard wordings, so an event elsewhere that cuts your supply may not count unless you have extensions. Underestimating the indemnity period is a common gap, because recovery often takes longer than expected. Our explainer on exclusions covers the boundaries, and our guide to complaining sets out the route if a claim is mishandled.
Getting the sum right
Base the cover on realistic turnover and costs, and review it as the business grows. The right sum and period is the difference between a business that reopens and one that does not.