What’s The Purpose of Business Interruption Cover?

In property insurance the purpose of cover is to put the insured in the same position after the loss as they were immediately before it.

The principal in Business Interruption cover is extended and will, if correctly arranged, put the insured in the same trading position after the interruption as they would have been had the loss not occurred.

Pure manufacturing in the UK has reduced to below 15% of Gross Domestic Product and many manufacturers are in reality only assemblers or distributors of products made elsewhere in the world. Their true Business Interruption exposure lies not in the UK but in their overseas supply chain.

The service industry continues to grow but is often dependent on services provided across the world such as call centres and data processing facilities. In a rapidly changing environment risk exposure must be monitored continuously to ensure the adequacy of the cover required.

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