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BUSINESS INTERRUPTION INSURANCE (DIFFERENT BETWEEN PROPERTY AND BUSINESS…
BUSINESS INTERRUPTION INSURANCE
WHAT IS BUSINESS INTERRUPTION ?
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
INDEMNITY
Indemnify holder
Indemnify fire
BUSINESS INTERRUPTION COVERAGE
Relocation
Employees wages - Payroll
Rent/Lease Payment
Taxes
Revenue
UNINSURED PERIL
Income that is not documented
Losses from partial closures
Utilities
Losses from closures cause by non-covered damages
SCOPE OF COVER
Prospective earning
Financial loss
EXAMPLE
Giant as the property got fire (Direct Loss) then the revenue, wages, rent and etc as the (Consequential loss/Indirect loss)
DIFFERENT BETWEEN PROPERTY AND BUSINESS INTERRUPTION POLICY
Direct loss
Business Interruption
Covers physical damage
Expenses
Property Policy
Indirect cost