What is my sum insured?
When you buy your policy, you will need to decide the maximum length of time that an interruption to your business might last should you need to make a claim.
For example, if you’re a hotel business and pipes were to burst after freezing weather, ask yourself how long it would take for you to return to normal trading levels after all your rooms were damaged by escaped water? This, along with your forecast of the profit you would have earned, based on your financial records, will determine the maximum amount that you are covered for – known as the ‘sum insured’.
What happens if I have to move premises as a result of an incident?
Your business interruption policy is designed to reinstate any lost profit as a result of the incident, so that you’re returned to the trading position you would have been in had it not happened. So if your business needs to move to temporary business accommodation to keep going, your insurance will cover you for things like the additional rent, staff overtime to help you move, and advertising to let your customers know where you are (amongst others).