What triggers a Business Interruption Insurance policy?
Business interruption insurance requires a 3 primary elements to trigger coverage for instance; a business as a direct result of a defined event (1) must suffer loss of business income (2) due to the necessity for the business to shut down either wholly or in part or otherwise reduce its business operations (3) while repairs to the premises are carried out. [defined events are usually linked to the same Insured Perils covered under the business’s material damage insurance for such things as fire, storm, tempest, earthquake, cyclone, flood, explosion – however, it may be necessary for some businesses in shopping centres and similar congested areas to include ‘consequential loss’ and perhaps ‘contingent business interruption’ in their business interruption cover – where for instance ‘obstruction of ingress and egress’ is a common cause of claim where customers could be effected by something going wrong at neighboring business premises] Example: A boutique Hotel located in a narrow city s
