BI insurance coverage should be set up to respond to meet the financial impact until the trading position is back to the planned level as set prior to the interrupting event.  It can require some specialist consultancy as offered by Cracknell Risk Consulting Limited, where a tailored service to meet a client's needs, at sensible professional fees, is available.

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BI insurance was developed in 1939 and has stood the test of time, since the core coverage remains in place some 80+ years later.  Over the years some welcome enhancements to BI coverage have become mainstream, particularly around the overall value chain as it applies to different businesses. There are complexities that CRCL can address and make clear should you find any aspect difficult to grasp.

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If a business location suffers fire, storm, theft, flood or another loss or damage event, the physical reinstatement will be met by the Property Damage section of insurance coverage.  Where there is a financial impact on trading as a result of the damage event, this is as met by the BI section.  The latter meets to ongoing fixed and semi-variable costs (e.g. payroll and overheads) of the business and the loss of net profit (collectively I term this Insurable Gross Profit to distinguish it from Accounting Gross Profit).  In addition, it also meets the extra costs that arise, whilst the business deals with the aftermath of such an event and deploys their business continuity options in the short, medium and long term. 

 

BI insurance extends to a few non-damage interruption scenarios that, for some businesses, included Covid-19, but this is now virtually exclusively excluded from BI coverage.​​