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Business Interruption Cover – Essential Reading

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Whilst Prezzo have the benefit of over 200 outlets to generate income, smaller independent retailers usually do not have this luxury so it is imperative that you have business interruption cover. This insurance normally comes as standard on a retail ‘package’ insurance policy but it is always worth asking your insurance adviser if it is included.

The whole road was closed off
The whole road was closed off

Speaking about the fire at Prezzo, businesswoman Sam Addy was quoted as saying: “I thought for a little independent shop like myself, and the other one at the other end of the street, that is no good for us. Although I feel bad for Prezzo and Pizza Express they can afford to make a loss but we can’t really afford to be out of business for a few weeks. I just hope that we stand strong and people will support us.”

That to me is a quote from someone who has no business interruption cover!

Andrew Jones, the Conservative MP for Harrogate and Knaresborough, said: “The fire on Albert Street is a hammer blow for the business and residents affected. Many of the businesses will be out of action for some time and the employees without jobs during that period. Around 13 families had to be re-housed overnight from flats in the area and I understand that the housing association that owns the properties will be assessing whether or not people can return to their homes. It seems likely though that some have lost their homes and belongings – a personal tragedy for them.”

Business interruption cover essentially covers your gross profit over the course of, more often than not 12 or 24 months should an event occur whereby it is impossible for you to trade normally. The fire at Prezzo in Harrogate is a perfect example of this, however let’s say the fire had spread into the adjoining building and their business was forced to cease trading. If they themselves had business interruption cover they would be able to pay essential bills such as rent and rates as normal, but without this cover they would have no source of income and would possibly have to take the neighbour to court which is costly, time consuming, and again, with no source of income would most probably cause the business to fail.

roadworksIt may not necessarily be a fire or other disaster which makes it necessary for you to claim on your business interruption cover. There are far more likely reasons for you to claim. We see all the time utility companies digging up roads and setting diversions making it impossible to access roads or frontages. This can always be detrimental to local businesses and can happen to anyone, anywhere.

In short, business interruption cover is an essential part of your business insurance policy and should never be overlooked, so for a fully comprehensive business insurance package, click on The business insurance comparison site!

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