Business Interruption Insurance

If you are a multinational organisation operating in some of the countries with the highest risk in the world, you have to face the reality that at some point you may be forced to close operations temporarily for any number of natural disasters.  In low-income countries, catastrophes such as fires, storm damage, or hurricanes can have a much larger aftermath than a similar event in a developed country where infrastructure and rescue services help restore normalcy.  For example, the devastating Haiti earthquake with a magnitude of 7.0 crippled the nation’s economy as it displaced over 1.5 million people, killed over 230,000 people, and demolished over 250,000 residences and 30,000 commercial buildings, and 4,922 schools.

Therefore, all types of organisations from nonprofits and educational institutions to large multi-national companies should consider business interruption insurance to pay an organisation’s lost income and fixed costs.   

Many organisations mistakenly believe that their property insurance will provide coverage for lost income and fixed costs.  Typically property insurance will only include reimbursement costs for assets. Business Interruption insurance supports property insurance.  If there is direct damage to the organisation that correlates to the loss of business property, business interruption insurance can support an organisation through those difficult times. 

Clements Business Interruption insurance can cover organisations around the globe to maintain their organisational mission.  It can also be paired with war & terrorism (i.e. political violence coverage) to cover acts of civil disobedience or terrorism that effect an organisation’s operations. 

Call us today at +44(0) 33 0099 0103 or email enquiries@clements.com to discuss how we can tailor your policy to meet the size and scope of your organisation.

Contact Clements Insurance Specialist

  • Benefits
  • Resources

Benefits and Features

Clements Business Interruption insurance is underwritten by certain underwriters, including Lloyd's of London and others, and coverage includes:

  • Lost income: A catastrophic event could result in suspended operations for days, months or even years, with significant revenue disruptions.  Business interruption insurance can provide reimbursement for an average monthly income for a time period designated in the policy.
  • Fixed expenses:  Salaries, rent, healthcare costs, etc. are all costs that an organisation will still need to pay even when it is not generating revenue.  Does your organisation have enough even to pay salary costs for a couple months with no corresponding revenue?  Business interruption insurance can keep an organisation solvent and care for employees in case of a disaster.
  • Relocation expenses: Your organisation may determine that the severity of the crisis will limit operations for such a significant time period that it makes sense to relocate either temporarily or permanently.  Business Interruption Insurance can support moving and relocation costs. 
  • Extra expenses:  There will undoubtedly be other incidental expenses related to the closing, relocating, or reopening of your business.  Depending on the parameters of your policy, other expense types may also be included. 

*Typically floods and earthquakes are excluded from natural disaster policies.    

Call us today at +44(0) 33 0099 0103 or email enquiries@clements.com to discuss how we can tailor your policy to meet the size and scope of your organisation.

Contact Clements Insurance Specialist