Business Interruption: is a break in commercial activities due to the occurrence of a fire or peril. Coverage against business interruption by fire or various named perils can be obtained through insurance.

Business Interruption Insurance: indemnifies for the loss of profits and the continuing cost of fixed assets.

Compensation for loss with business interruption is to restore the owner to the same financial position (after the loss that they would have been in) prior to the business interruption.

It is important that accurate, or at best up-to-date, financial records and the policy contract be accessible as these help to form an integral part in determining the ability of the insurance companies to quickly settle the claim.

Most companies offer business interruption insurance and the premium will vary. What is important in selecting an insurance company for this type of coverage is to ensure that the company has a good strong record of settling claims fairly and quickly. Here again most insurance companies will contract a loss adjustor to assist in determining the magnitude and settlement of the claim.

As usual, extensions are the order of the day with these types of plans and it is important to make sure that you are administered professional advice, cover all of your possible bases and that you clearly understand what you are covered for. Some typical extensions would include but not be restricted to the denial of access to customers and suppliers and dependency public utilities. Other dependency extensions are available on request.

This type of coverage can become a very involved process and we at Field Insurance Brokers are here to help you along the way.

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