Blog

January 08, 2018

when business is interrupted

business is interrupted

The going may be good for your business, and thriving too. But things can go haywire abruptly, from a disastrous fire or any natural calamities

The going may be good for your business, and thriving too. But things can go haywire abruptly, from a disastrous fire or any natural calamities, bringing despair and losses, making it impossible to continue trading.

Not necessarily, if you have Business Interruption Insurance which covers the loss of gross profits (GP) that a business suffers after a disaster like fire or other catastrophes. The GP loss covered may be due to disaster-related dip in business turnover.

Most standard property insurance policies taken by businesses cover only loss or damage to tangible items such as equipment and inventory, warehouses, office or store. Business Interruption Insurance differs from property insurance and the additional coverage allotted by the Business Interruption Policy covers the gross profits that would have been earned.

This means it is designed to put a business in the same financial position it would have been in, if the accident had not occurred. This product is not generally sold as a stand-alone policy and piggy backs the property insurance policy. The business interruption policy pays out if the cause of the loss is covered by the underlying property policy.

Businesses may want to consider interruption insurance as an essential part of their insurance program to ensure business continuity.

Recent Posts

Know More

Happy World Health Day - Healthy Lifestyle Tips for All Stages of Life

It is said that the human body is the best picture of the human soul. If we have a healthy and fit body, it will display the state of the soul that resides in it.

Know More

Tips for Fasting during Ramadan

Ramadan is the ninth month in the Muslim calendar. It begins with the appearance of the crescent moon. Fasting is one of the important rituals of Ramadan, read on for useful tips on fasting.

Know More

How to Buy the Best Health Insurance Plan in UAE?

Learn about the tips to buy the best health insurance plan in UAE as they not only provide financial security but also gives you a wide range of coverages for your family and individual.