Often referred to a ‘Business Interruption’ insurance, or ‘Loss of Profits’ cover, this section of a commercial insurance policy is critical for indemnifying the financial viability of a business in the event of a loss which impacts its ability to trade.
While you may receive repayment from your insurer for stock and contents to be replaced, and similarly cover for the building to be rebuilt, the real concern lies in your loss of productivity, the retention of key staff and associated wage costs, the potential for delay in replacing critical equipment and additional costs you may incur simply to continue operating – even at a reduced capacity.
This section of the policy will indemnify the businesses gross profit from trade after a claim to an equivalent financial position prior to the claim – on the proviso the declared limits are adequately set.
As with most policy types, Business Interruption Insurance is subject to an ‘Average Clause’ or ‘Co-Insurance’ . If your business has not adequately declared the limits in line with your actual turnover, wages, expenses , uninsured working expenses and subsequent gross profit from trade – the insurer has the right to reduce the claim proportionately.

Given this can be a complex calculation with certain expenses able to be removed, flexibility in terms of indemnifying the business wage roll and calculation for expected business growth allowed to be built into the limit, CIS engage a third party to undertake a full and thorough calculation of your company’s insurable gross profit from trade – at no expense to you.

CIS want to ensure you receive the best possible advice regarding this complex area of insurance and we understand the financial consequence to your business of ensuring this is right, so we engage a team of qualified insurance accountants and loss adjusters to calculate these limits.

This is the single most important service your broker can provide, hence our decision to wear the costs of using industry professionals to ensure our clients income and welfare are protected to the utmost in the event of a claim – does your broker do the same ?