Business Interruption Insurance protects business by compensating for loss of income in the event of close of business operations. The closure has to be due to a covered loss that has caused damage to the business premises. This insurance cannot be offered as a stand-alone policy, and a standard fire policy (property damage) need to be purchased to benefit from this insurance.
Business interruption insurance will help small businesses plan and manage for a disaster that puts their business temporarily unusable due to a damage caused by fire, flood or other perils. This insurance is also called as "Consequential loss of profit insurance".

Coverage

Business Interruption insurance policy covers for:
  • Loss of gross profit
  • Increased cost of working.
  • Standing charges .

What It Does Not Cover?

  • Property Damage.
  • Innate defects, wear and tear, degradation, impairment of perishable goods.
  • Liabilities arising out of any policy other than Carriers Act 1865 or Carriage by Road Act 2007.
  • Damage due to wars, terrorist attacks, riots and strikes, radiation.
  • Illegal or Smuggled goods.