Business Interruption
The most relevant types of insurance for affected businesses
will be material damage cover (which applies to physical damage to
property) and business interruption cover (which applies to
financial loss consequent on physical damage to property).
Business interruption insurance covers lost profit - ie -
reduced turnover or an increase in expenses, caused by a business
interruption. In most of these policies, the claim will be for the
gross profits lost as a result of reduced turnover, or for the
increased costs of continuing to operate through the interruption.
It may also include items such as wages, professional costs and
debts that need to be written-off. In some cases, there may also be
cover for losses arising from damage suffered by specified third
parties - for example, suppliers or subcontractors. As always with
insurance, the terms of the policy determine what is covered.
