Business Interruption Insurance (BI)

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Business Interruption Insurance (BI) Business interruption insurance covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected event (fire or a natural disaster). BI insurance aims to put your business back in the same trading position it was in before the event occurred. BI covers lost net income due to the closure of the business while repairs are underway. These policies may cover rent or lease payments, relocation costs, employee wages, taxes, and loan payments. For example, if a tree falls on your office roof and you need to shut down for repairs, this policy can help cover the costs of your lost income while they restore it. BI insurance may also cover a civil authority, like a government-mandated road closure that temporarily shuts down your company. To prove BI you must provide objective evidence of the losses via your financial statements, general ledger, tax returns, customer orders, vendor correspondence, and information regarding the physical restoration of the property. Insurers are liable for the loss of business income only during the period of restoration, which is often defined as the length of time required to rebuild, repair, or replace damaged or destroyed property. Expiration of the policy does not end the period of restoration; as long as the insured’s physical loss occurs during the policy period, a BI endorsement will provide coverage for the duration of the period of restoration. BI typically has a coverage limit. A limit is the maximum amount your insurer will pay toward a covered claim. Financial losses that exceed your coverage limit are typically your responsibility. That's why it's important to choose coverage limits that are appropriate for your business. Standard BI insurance does not reimburse policy holders if the business is closed due to a pandemic. Even some all-risk insurance plans have specific exclusions for losses due to viruses or bacteria. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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