Why is this cover important?
Too often people in business insure their business premises, contents and stock against the material damage risks of fire, explosion and other perils, without giving thought to business interruption insurance and the other problems that could arise.
When a business experiences a major loss it can take months or even years to get your business back on track.
Business interruption provides the revenue a business would have normally generated. Could your business survive with zero income for a month, several months or even a year?
After a serious catastrophe:
Our Policies Can Cover
When you consider the potential negative impact a catastrophe could have on your business, it puts Business Interruption Insurance into perspective, making sure your business becomes viable again.
Loss of Gross Profit
The profit your business would have earned.
Ongoing expenses like payroll, financing and other fixed costs such as rent or utilities.
Revenue earning operations including your supply chain.
Bills and Utilities
Interruption caused by service providers including electricity, water and gas.
Continuation of Business
Additional increased costs that may be incurred in an effort to return to normal business operations such as hiring equipment or outsourcing activities.
Relocation costs for moving to, and operating from, a temporary location.
Our Citycover Insurance Advisers understand the risks and exposures that could impact your business. We work with you to develop a business interruption model that is best suited to your needs.
Frequently Asked Questions for Business Interruption Insurance.
How do I work out the right Business Interruption sum insured?
Leave the hard work up to us. We can help you work out your business interruption figures to avoid any underinsurance. We help tailor a cover to suit your needs.
Can I pay my premiums by the month?
Yes. All insurance offered by Citycover can be paid by the month through premium funders. If you chose to use the premium funder’s service, your monthly instalments will be tax deductible.
What is the Indemnity period and how long do I really need?
When your business suffers an interruption to trading, the indemnity period is the maximum time period you can claim for.
However you must take into account that the indemnity period represents not just a period of time that it takes for your business property to be restored. It also reflects the time it takes for your business to be operating at the same revenue prior to the loss.
What does Additional Increase in Cost of Working actually cover?
This cover allows your business to pay increased costs to maintain the business or service during the time of loss. These costs might include employing additional staff, hiring in equipment or even temporary relocation costs.
What is “Underinsurance”?
Also known as the “Average” or Co-Insurance” Clause, Underinsurance is the result of nominating a value for an asset which is too low to actually replace it in the event it is lost or damaged.
Certain cover sections (Fire, Business Interruption – Income, and Electronic Equipment) contain the under-insurance clause. It is important to review the level of cover you have declared, as if the amount you have declared is too low, the insurer can apply a formula which limits their settlement to you for that loss. This can occur if you have declared less than 80% of the actual value of the risk/asset.
Many businesses unknowingly under-insure as they apply heavy depreciation to their assets or simply forget to include certain assets into their calculations.
Need to Claim?
The knowledge and experience of Citycover’s amazing team is widely recognised. We are extremely passionate insurance professionals, who love what we do.
Head of Client Services
Head of Claims Services
Senior Insurance Adviser
Senior Insurance Adviser
Insurance Adviser (AR 001256865)
Insurance Adviser (AR 000442425)
- Fiona G
Citycover makes our insurance life so much easier. In the last 3 years we have grown substantially and they have helped us facilitate this growth by ensuring we were covered all the way and finding us the best deals to suit our expectations of both price and best cover. They have taken the time to understand our business and our requirements and only ever a phone call away. I have also dealt with another Adviser [at Citycover], and they too have been nothing short of exceptional every time. In my experience, Citycover delivers an excellent standard of people and service.
26th October, 2017