Severn Bay Logo


Business Interruption cover, or Loss of Profits Insurance as it is more commonly known does one thing!

It provides you with a monthly payment, when you can’t trade, following a significant damage to property which prevents you from operating your business.

Fire & Flood are probably the worst case scenarios, but there are others.

In all cases you need to specify 2 factors

  • The Gross Profit or Gross Revenue figure over 12 months
  • The indemnity Period, 12, 16, 24, 36 months

Gross Profit should be TURNOVER less the cost or raw materials (If there are any)

The indemnity period needs to be long enough so you can fully recover your business in any situation.

Get these two numbers right and after the insurers have remedied the damage or loss to your physical assets, they will pay you until you return to the same level of profit and turnover, up to the length of the indemnity period, if necessary #becauseaccidentshappen to nice people all the time.

Get it wrong and your business may never recover!

Have a great week 😎



0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *