12 months business interruption cover is rarely enough

12 months business interruption cover is rarely enough

Whether caused by fire, flood, subsidence, IT failure or crime, unexpected disasters can turn your business upside down in an instant. As with a serious physical injury, many businesses never entirely recover. Loyalty and sympathy only go so far before you face losing orders, contracts, profits, people and jobs or worse. Estimates vary depending on where you look, but survey data quoted by organisations ranging from KPMG to AXA Insurance put the frequency of companies failing within two years of a major incident at between 40 and 80 per cent.

Thorough continuity, contingency and disaster recovery planning - plus the right mix of insurance covers and indemnities - will help you react faster to a business-critical threat, reduce your risk profile and even cut the cost of your business insurance premiums. Perhaps the single most important part of your business interruption cover is the indemnity period: if it’s not long enough to match the unique needs of your business, you could run out of the time – and money - you need to rebuild.

In this bulletin , Technical Director at Oval Insurance Broking, takes a look at the specifics of business interruption indemnity periods and outlines why they can make all the difference to how you bounce back from a disaster.

Business Interruption Insurance bulletin.pdf