Business interruption insurance is more important than most shop owners realise, says Wrapped
Business interruption insurance is often overlooked because many business owners believe that other insurance policies such as buildings and contents policies will take care of any losses suffered as a result of an event such as fires and floods.
Although buildings and contents policies will usually cover the initial damage to your property, they do not make allowance for any consequential financial losses your business will sustain in what can often be a long-term interruption in your trading. In fact, for many businesses without business interruption cover this can often lead to a business termination.
When disaster strikes
While there are many different causes of business interruption, the two most common are fire and flood. For fish and chip shops the former is more common.
When a disaster strikes, business owners often expect other policies to cover all of their losses. Stock can be replaced, eventually, yet a property suffering from fire damage can take months to repair and in the case of a total loss will take even longer. If you cannot operate in the interim, you will lose revenue, possibly run out of money, and you may lose staff as well as valuable customers.
Material damage proviso
Business interruption insurance always includes a material damage proviso, which simply means that it cuts in following a claim made against your building or contents insurance and covers financial losses that are a direct consequence of a business interruption, such as loss of revenue, loss of rental income and additional staff costs.
Of course, prevention is always better than cure, therefore, it is always a good idea to install a fire suppression system.
Ryan’s Wrapped Fish & Chip Shop policy not only includes business interruption cover so you can be sure that in the event of a claim you will be back in business as quickly as possible but offers a discount if you have for the world leading ANSUL fire suppression system installed.