If you suffer a major disaster, such as a fire, your material damage insurance will cover the cost of repairing or replacing buildings, material and stock.

However, during any period of disruption you are likely to have additional costs including the potential for lost orders.

These costs are covered by the Business Interruption Insurance but only if your policy has been arranged properly.

If you have set the basis of cover, sum insured or length of indemnity period incorrectly this will have a serious impact on the recovery of the business and loss of profits suffered.

Here are a few tips to make sure you have adequate cover:

  • Correct basis of cover – “Gross Profit” or “Gross Revenue” ?
  • Calculate the sum insured in the correct way (using the policy definition)
  • Arrange an adequate Indemnity period to provide cover for the duration of the interruption
  • Allow for anticipated growth and trends in the business – a loss could happen on the last day of the policy period and the indemnity period and cover has to go forward from there into the future.


Put simply,  you need to build up business profits. Don’t lose them by arranging poorly designing insurance cover.

For the best advice on making sure your business has the right cover, get in touch with one of our award-winning team.