Protect Your Business Revenue

By SME Insurance

Posted 09/02/15

Just as your customers expect their fish and chips pronto, we understand that many businesses need insurance cover quickly and efficiently. When you’re responsible for running a fast paced business, it may be difficult to find the time to search for the right insurance cover for your needs.

Business interruption insurance is sometimes overlooked by business owners who may mistakenly believe that their standard buildings and contents policies will cover their costs if their operations are interrupted due to an insured event such as break-ins, fires, or floods.

The 2015 Christmas floods across the UK have had devastating effects on some of Britain’s small businesses. In some instances businesses may have experienced financial hardship, made redundancies, or close permanently.

It is important to consider what you would do if unforeseen circumstances left your premises unusable and how you would keep your business running in the interim, as well as maintaining relationships with your customers.

Business interruption insurance can protect your business from loss of income that may be due to disaster-related closure of the business facility or due to the rebuilding process after a disaster.

The cover differs from property insurance which only covers the physical damage to the business. A business interruption policy typically covers the profits that might have been earned and aims to put the business in the same financial position it would have been in if no loss had occurred.

The following are typically covered under a business interruption insurance policy:

  • Profits that would have been earned.
  • Fixed costs such as operating expenses.
  • Temporary location and the extra expenses involved in moving to and operating from a temporary location.
  • Civil Authority Ingress / Egress – government mandated closure of the premises that directly causes loss of revenue, such as street closures related to a covered event.

Even a profitable small business may not have the resources needed to continue trading if their business is hit by a crisis. Business interruption insurance is there to help you get back on your feet and trading as usual should the worst is to happen and you have to make a claim.

To discuss your individual business insurance requirements, please call us or email NewBusiness@smeinsurance.com.

Source: http://www.fsb.org.uk/media-centre/press-releases/floods-cost-small-firms-831-million-pr-2014-11

Posted 09/02/15

Author: SME Insurance

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Fullers Bakery has used SMEi for the last 3 years for both business premises and motor insurance. The changeover from our previous insurers was seamless and efficient with queries and special requirements all handled very professionally. We have just entered our third year of cover with CBAIS and based on the previous two years, we look forward to a continued healthy working relationship well into the future.

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