Insuring your property, buildings, fixtures and fittings, stock and equipment are obviously important but so too is the need for adequate cover for loss of profits following loss or damage at your premises. Business interruptions do happen! Apart from the direct losses that arise from a fire, there are also losses that result from the interruption of a business. If damage to your business’ premises force you to close while repairs are made, you will still need to pay employees, mortgages, leases and other debts. These ongoing expenses can mount up quickly for a business that has reduced income–or no income at all. This policy could act as a vital lifeline for businesses.
You shouldn’t assume your policy includes business interruption coverage. Many business owners don’t even think about it until such coverage is needed. But remember that the cover under this policy is available only when the cover under the basic fire policy is triggered. This insurance usually is sold in tandem with property coverage. Coverage is generally provided for the “period of restoration”, which is usually considered to be the period which would be required to rebuild, repair or replace the damaged property at the described premises with reasonable speed and similar quality. It usually commences with the date of such damage or destruction and it is not usually limited by the date of expiration of the policy.