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BUSINESS INTERRUPTION INSURANCE (Business Interruption Coverage…
BUSINESS INTERRUPTION INSURANCE
Difference between property and business interruption policy
Property Policy
:check:Covers physical damage :check:Direct loss
Business interruption
:check: Expenses :check: Indirect cost
What is business interuption?
It is due to (interruption in business income) that covers the loss of income that the business suffers after a disaster.
Purpose
Protect the insured against loss of income
Business Interruption Coverage
Relocation
Employees wages- Payroll
Rent/ Lease Payment
Taxes
Revenue
Uninsured Peril
Income that isn't documented
Losses from partial closures
Utilities
Losses from closures cause by non-covered damages
Example
Giant as the property got fire (Direct Loss) then, the revenue, wages,rent and etc as the (Consequential loss/ indirect loss)
Scope of cover
:check: Prospective earning
:check:Financial loss
Indemnity
Indemnity holder
Indemnifier