BUSINESS INTERUPTION POLICY

(LOSS OF PROFITS FOLLOWING FIRE DAMAGE) Any business undertaking is set up to trade at a profit and to provide a return on the capital, which has been invested in it. The physical loss or damage to such business caused by fire (or other insured peril) can be compensated for by a FIRE POLICY. However, in addition to this material damage, there are other losses to the business resulting from disruption of business activities and loss of profits/or trade.

This loss of trade is not compensated under the ordinary FIRE POLICY but under a BUSINESS INTERRUPTION INSURANCE POLICY.

The Business Interruption Policy pays for:

• Net Profit Loss in consequence of the interruption of the business.
• Standing charges which continue to be payable by your business to the extent they are no longer earned by residual trading.
• Wages of employees that need to be retained during the interruption period.

Thus, Business Interruption Insurance is essential if the company is to continue in business after a fire loss, pay its outgoings and ensure that following such a loss of earnings, it does not become insolvent or go out of business.