Protecting your business with interruption insurance.
Interruption Insurance- Protecting Your Income.
DBASS Blog | May 2021

The COVID-19 pandemic has resulted in on going unprecedented disruptions for businesses and the economy. Many businesses particularly those in the Hospitality sector, for example have had to close their doors temporarily whilst government restrictions were in place and in some cases to cease trading altogether.

However many businesses may be covered by Business Interruption policies (BI) which provide cover for losses arising from an interruption. It is vital that business owners make contact with their insurers and determine exactly what level of coverage their business has.

A recent court ruling instructed insurers to clarify the scope of their interruption insurance.

Ensuring that affected businesses going forward will have a clearer overview of what their insurance actually covers.

Generally speaking for Business Interruption the following applies:

  • A business interruption clause or endorsement is designed to protect the insured for losses of business income it sustains as a result of direct physical loss, damage, or destruction to insured property by a covered peril.
  •  Business interruption insurance is not sold as a separate policy but is either added to a property/casualty policy or included in a comprehensive package policy as an add-on or rider”.

Although the contents of individual policies and endorsements may vary slightly, many use relatively consistent language to describe business interruption coverage.

It is imperative that the insured person is clear about the level of cover in relation to their policy and we would recommend that you speak to your insurer directly about any queries you have in relation to your existing policy and the level of business interruption insurance which is included within.

Disclaimer notice

This article is for discussion purposes only.  For further information on any of the topics covered in this article please contact a DBASS adviser on ph. 01 849 88 00.

by Melissa Phibbs, DBASS Chartered Accountants.