Business Interruption Insurance
For the most part, business property and contents claims are similar to domestic claims, but one major difference is business interruption insurance. While this can be taken out independently, it’s usually a clause in your building insurance policy. It isn’t a legal obligation, and it’s up to you, the policy holder, to make sure it’s covered in your policy. This can be best assured by using an insurance broker, rather than doing it yourself.
Where your property insurance only covers physical damage, business interruption insurance covers you for loss of business as a result of the damage. It mainly applies to damage caused by fire or flood, but it can also cover various kinds of accidental, natural or malicious damage.
Having business interruption insurance can make the difference between your company surviving or going under, following an incident. Allied Claims can help ensure you get everything due to you.
Do You Need Business Interruption Insurance?
That depends on your business. The main question is what effect property damage would have on your ability to continue trading. A small business that could, if necessary, operate on a laptop in a local café is unlikely to need it, whereas a business with substantial machinery or stock on-site almost certainly will.
The Business Interruption Indemnity Period
The length of time a business can be covered by business interruption insurance is called the maximum indemnity period. This is set when the policy is drawn up, and is normally 12, 24 or 36 months.
The best period to choose depends on your business. You need to estimate how long it would take to replace equipment and stock and to rebuild your premises, and it’s generally better to overestimate than underestimate. If you’re not covered for long enough, your business could still end up going under.
The Material Damage Proviso
Any business interruption policy will include a material damage proviso, a condition requiring the policyholder to maintain active material damage policies so there are funds to cover replacement of stock and equipment. This is designed to protect the insurance company from having to cover business interruption for longer than necessary.
Making a Claim on Business Interruption Insurance
Business interruption insurance can be especially complex to calculate. The insurance company’s loss adjuster will naturally be looking for an interpretation that favours the company, and it’s best to have an equally expert professional on your side.
An independent loss assessor like Allied Claims works entirely for you, preparing and presenting your claim and negotiating a fair settlement with the loss adjuster. Most importantly, the loss assessor will ensure the amount to be paid is based on solid business forecasts, taking into account factors like planned expansion and including both tangible and intangible assets.
Making an insurance claim is always a stressful process. Using Allied Claims can take away a lot of that stress, leaving you able to concentrate on rebuilding your business.
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Allied Building & Property Claims Management Services Ltd. Reg. no. 09504429
Enfield Business Centre, 201 Hertford Road, Enfield, Middlesex, EN3 5JH