Cookie Laws within the EU Allow Cookies
Competitive personal insurance for your family home, car and holidays

Call us on
020 8309 1717
Top tips – Business interruption
Published on the 1st August 2018

Business interruption (BI) insurance provides a lifeline following a loss, supporting organisations financially until they make a full recovery.

Whilst BI provides a lifeline to a business following a loss, inaccurate sums insured and inadequate indemnity periods are a major source of underinsurance, jeopardising the chances of recovery for many businesses.


The following tips will enable you to select the correct level of BI protection, and help assure future resilience to loss events.


Have a plan


Planning how to respond to potentially harmful events is vital for any business, and an essential first step in choosing the correct BI cover.


Business continuity planning is a valuable exercise that helps increase an organisation’s resilience through anticipating potential losses and planning how best to respond.


It is advisable to record key findings in a formal business continuity plan (BCP), which should remain under regular review and testing, and serve as a core risk management tool. For example, should a key supplier suffer a major loss, a good BCP might detail arrangements with alternative suppliers that could quickly meet urgent customer orders.


In addition to boosting resilience, considering potential loss scenarios is the best way of identifying much of the information needed to set suitable BI cover levels.


For example, without fully understanding how an organisation’s variable costs will change following a loss, it will not be possible to set an accurate gross profit sum insured (see tips 3 & 4 below). Equally, without contemplating potential worst-case scenarios, it will not be possible to choose a suitable maximum indemnity period (see tip 5 below).

Recent Posts
  Finance Update Newsletter July 2019
PROTECTING YOUR BUSINESS - How to create a business insurance...

17th July 2019
Driving in the EU & Republic of Ireland - What you need...

22nd March 2019
  Winter Newsletter
BREXIT, Trade Wars, Sanctions, Concerns of a global economic...

11th January 2019
  Indonesia NTSC issues preliminary report into Lion Air Flight 610 crash
Indonesia’s National Transportation Safety Committee...

28th November 2018
Archived Posts >>
Search posts
Services for UK based residents and businesses only.

Authorised and regulated by the Financial Conduct Authority.