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Insurance Details
Business Interruption Insurance is designed to protect your business’s income and financial position when operations are disrupted by an insured event.
While property insurance covers physical damage, Business Interruption Insurance responds to the loss of revenue and increased costs incurred while the business recovers and returns to normal operations.
It helps businesses continue meeting financial obligations—such as wages, rent, and loan repayments—even when trading is interrupted.
Cover Sections / Benefits Covered
Q&A – Common Questions
Yes. Property insurance covers physical damage, but it does not cover the loss of income while your business is unable to trade or operating at reduced capacity.
Business Interruption Insurance fills this gap by protecting cash flow during the recovery period.
Cover should be based on your gross profit or revenue, fixed costs, and how long it would realistically take to fully recover after a major loss.
Choosing the right indemnity period is critical—many claims fail simply because the recovery takes longer than expected.
At FRS, we help clients calculate appropriate sums insured using financial data, not guesswork.
Changes such as increased turnover, new contracts, additional locations, or supply-chain changes can impact Business Interruption cover.
If insurers are not informed, claims may be reduced.
FRS works with clients throughout the year to keep cover aligned as the business evolves—not just at renewal.
Business Interruption claims are usually triggered by an insured event under the property policy, such as fire, storm, explosion, or malicious damage.
Extensions may apply for events like denial of access, supplier disruptions, or utility failures, depending on policy wording.
Many businesses underestimate recovery time, fail to include all fixed costs, or rely on outdated financial figures.
Underinsurance can significantly reduce claim payouts, especially for long-tail interruptions.
FRS ensures sums insured reflect current turnover, cost structures, and realistic recovery scenarios.