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Do I need business interruption insurance?

Business Interruption Insurance

To avoid any shortcomings for your business, it is a good idea to opt for business interruption insurance. This is the best step your company can take, to ensure that there are no losses incurred due to an interrupted business.

By getting covered under business interruption insurance, one can ensure that their business would not face any losses due to an abrupt interruption and they would be able to get the business back on track with much ease. This is mainly because the incapability to generate revenues when the business is subject to damage would be covered by the insurance. Business Interruption Insurance can be procured as an additional extra to the existing business insurance package.

When can I raise a claim?

When your business is subject to any of the above mentioned conditions, you are liable to claim a compensation fee. Based on the below mentioned factors, you may raise a claim with the insurance provider when you are not able to generate sufficient revenues.
a)
The margin between the estimated and actual profits, which occurs due to a business interruption.
b)
Reduced income due to high operating costs, such as temporary relocation, procuring goods at higher prices due to various factors etc.
c)
Damage to the records of accounts of customers due to which you are unable to recover revenues from them.

When you raise a claim, the payment is made subject to the policy constraints. By opting for business insurance, you would be free from losses when your business is interrupted. Moreover, the chain reaction would be avoided due to which a business slips to losses and is unable to raise funds.

Also, in events of shortcomings or interruptions, your business would be able to bounce back and resume with the business. However, it is best recommended that you understand the scope and limitations of the policy precisely before opting for one.

Your Virtual Office London have helped thousands of small businesses progress to become successful enterprises. If you would like to discuss how we can help you please contact the team today.

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