Business Insurance

After a serious catastrophe

• Production is disrupted
• Income falls drastically
• Redundancy and other payments must be made to employees who lose their jobs.
• Emergency measures, like hire of other premises and plant, must be paid for.
• Delays in rebuilding and replacement of plant can drain capital.
• Lost orders and customers may never be recouped.
• Recruiting and training new staff can delay recovery.
• Net profit becomes net loss.

A sound risk management plan considers need to insure the loss of cash flow as well as the provision of material damage cover for buildings, plant and stock.

Interruption to trading may last for a few months, a year or even longer. There are also the immediate extra expenses to get the business going again, and as quickly as possible, so that customers are not lost.

A Business Interruption Policy provides cover against a loss of "gross profit" which in insurance terms means simply, net profit and overheads.

In this video clip provided by Zurich, Dr. Allan Manning explains why.