After an event such as fire or flooding, your buildings and contents cover will put you back in the position you were before for the physical building and items. However, when you take out business interruption insurance, you will be covering the losses as a result of the interruption to operations during the time the building/contents are being reinstated. Policyholders should consider that when estimating the indemnity period, and delays in manufacturing and supplies, the rebuild/reinstatement period could be longer. BIBA also recommend calculating gross profit carefully to avoid underinsuring as well as taking into account predicted growth.

👉 Check the indemnity period for business interruption cover to account for supply chain issues and delays.

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