The summer of 2018 will be remembered for a famous wedding, a worldwide heatwave and fast-moving fires across Europe. The Greek coast was devastated left scorched. In the UK, the Saddleworth Moor fire raged for three weeks. A heath fire covered 198 acres in Dorset. Each event left businesses interrupted for weeks during the event, but the long-term interruption will hit their bottom-lines even further.
If your day-to-day business is affected by an interruption such as this, you may wish you had business interruption insurance in place. Many small businesses do not have the resources or cash in the bank to continue to trade during a disruption. Reduction in cashflow can result in difficulties in paying your employees. Some small businesses simply do not survive the indirect loss of business and revenue, for even a short period of time.
Business interruption insurance covers the consequential loss of income a business may experience following an insured, but unexpected event. Both the indirect loss of business and your revenue can be protected by the cover. This includes fire or flood. Some parts of the UK are at risk from post-heatwave flash flooding in localised areas, putting companies out of business.
If your business property is destroyed or damaged by fire, apart from physical damage, you may also incur extra costs to get you back on track. You may need to rent an alternative premise to maintain the turnover of the business. Perhaps hire additional staff to assist with the move. You’ll need to spend money letting your suppliers and customers know where to find you. Business interruption coverage can reimburse you for all of these costs that quickly stack up.
Unlike other types of insurance cover, it even includes the cost of accountants’ or auditors’ fees incurred in preparing a claim. Business interruption insurance can be arranged by the highly-experienced team at John Morgan Partnership as a separate stand-alone policy or incorporated into a package or commercial combined policy.
Once you have your cover in place, you can claim for your loss of income or gross profit caused by:
- Damage to your property
- Physical damage to the vicinity of the insured premises which prevents access to the premises
- any other incident within a one-mile radius of the insured premises which results in lack of access to the premises for more than 24 hours.
- Damage arising at the premises of one of your customers or suppliers in the European Union.
- Failure in the supply of utilities or internet services for more than 24 hours as a result of damage to the service provider’s premises
- A third-party maliciously blocking access to your computer system, programs or data for more than 12 hours (providing a back-up of data is made at least once a week)
All you have to do is keep a record of all amounts owed to you. Keep a copy of the record away from the premises. The team at JMP will make sure that your claim is handled efficiently, and payment is made promptly. So you can focus on getting your business back.