How it works
Business interruption (BI) pays loss of gross profit (or revenue, on some policies) and increased costs of working after insured physical damage, such as fire or flood, interrupts your business. It’s normally linked to your property policy: no insured damage, no BI claim, unless an extension applies.
The two settings that matter
- Sum insured: based on insurable gross profit, which is defined differently from accounting gross profit. Ask your accountant or broker.
- Indemnity period: the maximum time the policy pays. Think about rebuilding, planning, replacing specialist equipment and regaining customers; 12 months is often too short.
Useful extensions
- Suppliers and customers: damage at a key supplier’s or customer’s premises.
- Denial of access: you can’t get in because of damage nearby or police cordons.
- Utilities: failure of power, water or telecoms supply.
- Notifiable disease: wordings vary greatly, and many were tested by pandemic claims; read carefully.
Last updated: 9 October 2026
