Businesses of all sizes will at some point face disruptions in their operations. While larger companies are in a better position to absorb the costs of a serious incident, compared to smaller businesses, you should talk to your Indwe advisor about how we can assist you in the face of a catastrophic event that will impede or prevent your company from functioning. After all, without any income, how do salaries, rent and suppliers get paid?

All businesses should have insurance, but it’s equally important to have the right type of insurance, so that your business is protected in the face of a disaster such as a fire, flood or even a riot. Fire insurance generally applies to factories, warehouses, workshops and garages, and it will cover the costs of replacing or repairing the physical buildings in the event of a fire, lightning, or explosion. Buildings Combined Insurance usually applies to residential blocks of flats, hotels and hospitals, and these buildings are covered if a peril occurs, while Office Contents Insurance covers the loss or damage to office contents.

While these types of insurance cover the buildings or the contents, none of these insurance options will cover you for the financial loss incurred if the operations of your business are interrupted by a peril. When operations are suspended or hampered, the company may lose clients while also incurring extra costs, from renting a temporary premise, to hiring additional staff for a clean-up operation. It’s unlikely that many companies can survive the financial impact of an event of such magnitude, which is why all businesses should consider Business Interruption Insurance as part of their insurance portfolio.

The purpose of Business Interruption Insurance is to provide financial support to keep a business financially viable during the period of interruption. This could last for a short amount of time but in most cases the period of interruption could last for a number of years. It also gives the business owner time to recover the company’s customer base and pay for essential costs, to get the business up and running again. It does this by covering overheads and replacing lost income, until the company returns to the same financial position that it would have been in, had the event not occurred. This makes Businesses Interruption Insurance a necessity, rather than a luxury. 

There is very little that a business owner can do about unexpected events, but what they can control is having the right insurance to protect their business from loss and interruption. When you add Business Interruption Insurance to your cover, there are certain terms and conditions that must be adhered to, so that your company is financially safeguarded in the event of a serious incident.
Business Interruption Insurance provides a company’s owner with peace of mind and the security in knowing that they can recover from a severe setback, and escape potential financial ruin or even permanent closure. 

To find out how you can protect yourself and your company, speak to Indwe Risk Services about Business Interruption Insurance. Call us today on 0860 13 13 14 and talk to an advisor you can trust.

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