We have been out and about in South Yorkshire talking to motor traders a lot recently and found that Business Interruption (BI) insurance is a common gap in cover.
There seems to be a common misunderstanding of the importance of BI cover and more often than not, we are finding that so many motor traders do not have any cover. Whilst BI is not a legal requirement, we consider it to be a fundamental part of any motor trade insurance programme.
Consider the worst-case scenario; total loss fire. Your material damage insurance will reinstate the assets you have lost i.e. plant, machinery, tools and vehicles etc but who picks up the cost of your loss of income?
It could take several months for your business to fully recover and in the meantime, your customers can’t wait – they will need to use alternative providers…your competitors!
Business Interruption covers you for loss of income during periods when you cannot carry-out your normal business activities due to an unexpected, insured event. The cover aims to put your business in the same trading position it was in before the event occurred.
So, let’s summarise. BI cover should be considered because it;
- Protects the money your business earns
- Provides financial support to enable your business to recover
- Provides financial support to continue to pay staff & bills
- Helps you to retain your customers
When times are tough, don’t remove cover for BI – safeguard the future of your business!
If you would like to discuss this in more detail (or any of you business insurance
requirements) please give us a call on either 0114 243 9914 or 01302 341 344.