answersLogoWhite

0


Best Answer

Business interruption insurance is to a business what disability insurance is to an individual. During the time that your business is suspended, due to an insured event, the insurance is intended to recover the lost profits and proportional fixed expenses. This should theoretically make the business "whole" during the suspension by reimbursing all of the continuing expenses. BEWARE insurance companies view depreciation as a variable expense, not ongoing overhead, and will attempt to exclude the depreciation on assets, whether destroyed or not, from any business interruption recovery.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why need Business Interruption Insurance?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Is business interruption insurance a good insurance company?

"Business Interruption Insurance is not an insurance company. It is a type of insurance that protects a business in case of an interruption such as machinery malfunction, power outage, or other reason that may cause the business to be interrupted temporarily."


What has the author Denis Riley written?

Denis Riley has written: 'Consequential loss and business interruption insurances and claims' -- subject(s): Business income insurance, Business interruption Insurance, Insurance, Business interruption 'Riley on business interruption and consequential loss insurances and claims' -- subject(s): Business income insurance


Where can you purchase business interruption insurance?

Allianz is a servicer of business interruption insurance. If you have a small business loan, check with your loan provider as well to see if they can offer you this type of insurance.


Can business interruption insurance be purchased by itself?

"Business interruption insurance can be purchased by itself, but for optimal coverage, it is usually used to supplement Property insurance or other types of coverage."


Why would you need business insurance?

"Business insurance, like any other type of insurance, serves as a contingency for any unforeseeable event. It protects intellectual properties and assets as well as worker's compensation. It also deters against liability, any ensuing casualties, and business interruption."


What has the author Edward C Bardwell written?

Edward C Bardwell has written: 'New profits, business interruption insurance' -- subject(s): Business income insurance


What kinds of business insurance are there?

The different types of insurance vary greatly with each individual business' needs. It can range from property, equipment, debris removal, glass, business interruption, and tenant's insurance are just a few examples. Each company will have a need for some or all of these services. There are literally hundreds of different types of business insurance. Each industry has its own insurance requirements,that must be accomodated.


How do you rate a Business Interruption Insurance Proposal?

Business Interruption Insurance replaces lost income after a loss. It is best to apply an amount of coverage that is equal to your actual income. The period of time your income can be replaced may be as little as only 3 months, and as much as 18 months depending on the insurance company.


What insurances are needed for business consultancies?

Business consultancies should have insurance that protects their premises. If they have employees they are required by law in the UK to have employers liability insurance. Additionally they may choose to purchase business interruption and professional indemnity insurance too


What has the author John D Phelan written?

John D. Phelan has written: 'Business interruption primer' -- subject(s): Business income insurance


What are five important insurance for hospitality industry?

o Workers Compensation o Superannuation o Fire Insurance o Public Risk o Business interruption or loss of profits insurance


What is the need for developing sustainable insurance business in Nigeria?

the need for developing insurance business in Nigeria