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A business interruption policy is a form of insurance that offers cover should you be forced to close your business following a disruption.
Business interruption insurance can cover a range of aspects, but overall, it is designed to put you and your business back into the same financial position you would have been in had the disruption not occurred. It allows you to continue to meet your obligations such as paying bills, staff and other commitments even when your business is closed.
Many businesses that incur a major loss are unable to resume trading because they don't have business interruption insurance to make up for lost business income while their business is being restored. Some businesses may remain open for some time but under duress, they lose customers and sales due to their inability to provide the same service they had prior to the claim.
Where a standard business insurance package policy could cover the cost to repair the kitchen, a business interruption insurance cover could reimburse you for any lost income while your doors were closed.
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