The life insurance of your company
Corporate damage
What is business interruption insurance?
When your business activity stops or slows down due to unforeseen circumstances in your premises, it comes at a price. Whether this is due to fire, water damage or a natural disaster, fixed costs will continue. Thus, the survival of your business may be at risk.
This insurance guarantees your income during a predetermined period. Because of this, it is also called the life insurance of a company.
Why do I need business interruption insurance?
Your anchor in uncertain times
Thanks to this insurance, you count on a fixed income stream. This will allow your business to continue to meet fixed costs, even in the event of a temporary interruption of operations.
Result? A reduced risk of financial instability, bankruptcy or major restructuring in the future.
Preserving human capital
Your employees continue to receive their wages, reducing the risk of staff turnover.
Thanks to our insurance, you keep your team even during periods of lost income.
Adjust speed
If there is an opportunity to restart at another location, this insurance covers the costs required to do so. Thus, your business will be at a standstill for less time.
What does business interruption insurance cover?
Business interruption insurance is an essential policy that protects companies against financial losses and costs incurred due to interruptions in business operations.
This insurance provides compensation for lost income, extra costs and other losses arising from the interruption. These may be caused by unforeseen events such as fire, flood, or other circumstances that disrupt the normal operation of the business, among others.
Some benefits of business interruption insurance:
Income protection
It covers the loss of income that occurs when your business is temporarily unable to carry out operations (due to a covered event).
Fixed costs
Insurance covers ongoing fixed costs, such as rent, salaries and leasing. Because, of course, these continue even when your business is not operational.
Additional costs
Additional costs may arise as a result of the interruption (e.g. you may have to rent another location). These costs will be covered.
Customer relations
You can continue to meet your obligations to customers even if your business is temporarily closed. This way, you retain important customer relationships.
Relaunch
If your business can restart in another location, the insurance will cover the transition costs.
Financial stability
This insurance reduces the likelihood of bankruptcy or long-term restructuring by intervening in various costs.
Frequently asked questions
Discover the most frequently asked questions about this insurance. Over the years, we have collected this information and summarise it here. Easy, right?
During which period is compensation awarded?
The reimbursement period is tailor-made for your company. Typically, the reimbursement period is between 6 and 18 months.
How is compensation calculated?
It depends on your type of policy. Different formulas are available:
- turnover fee
- daily allowance (based on your fixed costs)
- accounting formulas
Materné will guide you on the search for the right formula tailored to your business.
What is the difference between business interruption insurance and fire insurance?
A fire insurance covers costs to your premises and contents (after fire, water damage and natural disasters).
Business interruption insurance covers the financial consequences (following fire, water damage or natural disaster).
Suppose your business is shut down for six months after a fire, your fixed costs will continue. Business interruption insurance will (partially) reimburse your fixed costs. If necessary, you will also be reimbursed for the cost of resuming operations faster at another location.
Should I adjust my insurance business losses as my business grows?
In most cases, a settlement is made at the end of the insurance year (based on the figures your company achieves). The following year's advance premium is adjusted if necessary. In this way, your business loss insurance evolves with your business.
Is my company insured against damage caused by cyber attacks under an Insurance Business Damage policy?
Cyber attacks are excluded in a business interruption policy. There is a separate cyber insurance. Materné will be happy to advise you on this.
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