Business Interruption Policy
A Business interruption policy provides indemnity for loss of profit if a business is interrupted following a fire or machinery breakdown. The policy covers expected profits and fixed expenses for a defined period. Such a period can be chosen by the insured organisation.
Coverage:
- Profits- Profits that would have been earned (based on prior months' financial statements).
- Fixed Costs- Operating expenses and other costs still being incurred by the property (based on historical costs).
- Temporary Location- The extra expenses for moving to, and operating from, a temporary location.
- Extra Expenses- Reimbursement for reasonable expenses (beyond the fixed costs) that allow the business to continue operation while the property is being repaired.
