A Policy that covers the financial consequences suffered by a business arising from the interruption of its’ operations.
Businessmen are not only interested for cover of possible loss or damage to their property but also to avoid financial losses for that period of time after their business will not be able to operate as it operated prior to the loss or damage. This uncertainty may be transferred to Laiki Insurance by the purchase of Business Interruption Insurance. By buying such a cover businessmen buy the widest possible form of cover and eliminate the uncertainty of interruption of normal business operation as a result of the loss or damage.
This policy is common expressed as Loss of Profit or Consequential Loss.
Business Interruption Policy is not offered without buying a Fire Policy.
What is the Business Interruption Insurance Policy?
- A comprehensive insurance policy covering the financial consequences suffered by a business arising from the interruption of its operations as a result of fire or other insured peril
- This Insurance is also known as Loss of Profits or Consequential Loss Insurance
- For a Business Interruption Insurance Policy to be written there must be a corresponding Fire Insurance Policy in force.
- This type of cover is included in the Office and Shop Policies as an optional cover
What does the Business Interruption Insurance Policy Cover?
The Policy covers:
- Loss of Gross Profit as a result of total or partial interruption of the business’ operations due to loss of or damage to the contents and/or the building of the business caused by fire, lightning and explosion of boilers or gas cylinders used for domestic purposes.
- The payment of additional expenses aiming at limiting the interruption such as use of temporary premises, rental of furniture, spare parts or telephones, etc.
The following are also covered optionally:
- Loss of Gross Profit caused by earthquake, storm, tempest, flood, malicious damage, bursting of water pipes or overflowing of water tanks, riots, strikes, impact by vehicles or airplanes, explosion (other than mentioned above) fire resulting from bush fire.
- Auditors’ fees reasonably incurred for producing and certifying any particulars required in connection with a claim.
What does the Business Interruption Insurance exclude?
The policy is subject to certain exclusions, some of which are:
- War, acts of terrorism, loss, damage or liability arising from nuclear weapons material and radioactive contamination premeditated act.
- Short circuiting or self heating of any electrical plant or apparatus, subsidence and landslide.
- Business interruption due to theft
- Loss or damage to the boiler itself that was the cause of an explosion.
- Loss or damage to stock that is stored below the level of the road and is not placed on shelves of at least 15cm height.
Who can Benefit from the Business Interruption Policy Insurance?
Shopkeepers, factory owners, hoteliers and others (professionals, businessmen, organisations)
Some Advantages of the Business Interruption Policy Insurance
- Cover of the payroll and all other fixed costs of a business (rents, insurance premiums, etc)
- Ability the length of the Indemnity.
- Adjustment of the premium every year.