Don’t Just Insure Your Stuff – Insure Your Income...
Most businesses have insurance for buildings, contents and stock. But what happens if you can’t trade at all due to a fire, flood or cyber attack?
That’s where Business Interruption Insurance comes in. It protects your cashflow during downtime and could be the difference between survival and closure.
What Is Business Interruption Insurance?
Business Interruption (BI) insurance covers loss of income when a business is unable to operate due to an insured event. This might include:
Fire or explosion
Flood or storm damage
Theft or vandalism
Cyber attack or data breach
Equipment breakdown
It pays out for:
Lost revenue
Ongoing overheads (e.g. wages, rent, utilities)
Temporary relocation costs
Rebuilding or recovery expenses
Real-World Example
A bakery in East Yorkshire suffered a fire that destroyed its ovens and production area. Their building and contents were covered, but without BI cover, they would have received nothing for three months of lost trading. Thankfully, their policy included BI cover that covered their loss of earnings and helped them relocate temporarily.
What Are the Pitfalls?
Common BI insurance issues include:
Too short an indemnity period: Some businesses need 12-24 months to fully recover, but policies may only pay for 6.
Wrong sum insured: The figure should reflect gross profit, not just net.
Policy doesn’t match your risk: Some don’t include cyber cover or supply chain interruption.
Does My Business Need It?
If your business relies on:
A physical location (retail, hospitality, industrial)
Specialist equipment or stock
Key staff who can’t be easily replaced
Day-to-day sales or contracts
...then yes, you need business interruption insurance.
Let H.I. Commercial Review It for You
BI insurance can be confusing, but we’re here to make it simple. We work with businesses in Hull, Beverley, York and beyond to:
Review and explain your cover
Recommend the right indemnity period
Ensure your business can recover fully after disruption
Share this post: