Frequently Asked Questions about Business Income Insurance

If there is a fire in the adjacent property which then results in the closure of my business, will the loss of income be covered by Business Income Insurance?

Yes, most policies would provide a benefit in this instance as the disaster was out of your control and prevented the business from running to its usual capacity. It is important to realise that if there is any damage caused to the property or stock, this is not covered by Business Income Insurance. This is a separate policy altogether. Business Income Insurance only covers the loss of income/profit which has been lost due to the disaster.

Is there any way to reduce the premiums on the policy?

Usually by agreeing to a higher excess, the amount that you are prepared to waive before the policy pays out, the premiums are then considerably reduced.

Is there a specific time of year that the policy should commence, IE; the beginning of a tax year?

No, the only requirement when purchasing a business income protection policy is that you provide detailed audited accounts or similar accounts. These will be assessed and scrutinised by the insurer who will then advise on the amount of cover required. It is advisable to look for an insurance provider or a broker who is familiar with the industry you are trading in.

Are the providers of Business Income Insurance regulated?

Yes, any company or individual who sells insurance are regulated and registered by the FSA.

Guide Contents

Business Income Insurance
Compare Business Income Insurance plans
Buy Business Income Insurance
Frequently asked questions about Business Income Insurance
Where to get more help about Business Income Insurance

main menu << previous page  next page >>