Business Interruption insurance

Both Property All Risks (PAR) and Machinery Breakdown (MB) insurance will not be complete without a Business Interruption insurance (also called Loss of Profit insurance). Indeed, PAR and MB policies will cover your company’s direct loss, but if you have to stop your activity for a few days or months, you will also incur loss due to direct costs and a loss of profit during this period. Only Business Interruption insurance can cover this.

More specifically, it covers the loss incurred as a consequence of damage covered under either Property All Risks (PAR) or Machinery Breakdown (MB). Reduction in turnover or Increases in the cost of working resulting from a loss or damage can be covered under this policy. The period of indemnity can be set to cover the amount of time it would take a business to resume its operation following a partial or total loss.

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