Our current clients include small companies with less than five employees to large firms with hundreds of employees. We get the best quotes because we work with more than 40 specialist insurers across Ireland, UK & Europe. We also have a team of qualified and experienced professionals as well as dedicated claims handlers.

What is Business Interruption Insurance?

Business Interruption Insurance provides protection for businesses in the event that their ability to earn income is interrupted following an insured property damage event. Examples of property damage events or risks (also called perils) can include fire, storm, flood, lightning, explosion, malicious damage, escape of water from burst pipes or tanks, impact by vehicles, theft or attempted theft, subsidence, oil leak or accidental damage.

Business Interruption Insurance kicks in from the time that the property is damaged and the business’ ability to trade is inhibited. The cover is intended to help the insured business pay the bills, prevent insolvency and be ready to restart production when the property damage has been repaired. Business Interruption Insurance can also assist an insured business with the additional costs of trading from an alternative location or outsourcing to keep the business going and retain customers. The cover can also include Loss of Rent. Always subject to the policy terms and conditions.

Business Interruption Insurance is one of the most important covers that a business can purchase.

What is Insurance Gross Profit?

The sum insured under a business interruption insurance policy is generally referred to as “insurance gross profit” or simply “gross profit”.

It is important to understand that this is not the same as accounting gross profit. For example, the standard insurance gross profit sum insured generally includes 100% of payroll. There is a specific calculation required for insurance gross profit and this is something your insurance advisor can assist with.

Examples of Business Interruption Claims

✓  A factory was closed by the Fire Brigade due to a major fire at a neighbouring premises. Fortunately, the business had Business Interruption Insurance with denial of access cover and the insurer paid for the loss of insurance gross profit arising from the incident.

✓   A manufacturing plant was damage as a result of fire. The Business Interruption Insurance kicked in and supported the business to pay its bills during the downtime. This included paying the wages of key employees. After 6 months the plant restarted production. The business interruption insurance claim continued to be paid for 18 months after the fire until the turnover had recovered where it would have been, had the fire not occurred.

✓  The premises of a recycling business was damaged in a fire. The business interruption insurance paid for the additional cost of working to transfer waste to an alternative facility which allowed the business to continue trading.

Why Business Interruption Insurance?

Most businesses operate on tight margins. If turnover stops or significantly reduces following a property damage event, it is essential to have adequate Business Interruption Insurance in place so that alternative temporary trading arrangements can be made, key employees and customers can be retained and ongoing financial commitments and bills can continue to be paid.

Business Interruption Insurance supports a business to get back up and running as soon as possible. Without the cover, many businesses would lose key employees and customers, fail to pay ongoing bills and ultimately become insolvent or incur losses that would set them back many years.