Skip to content
Patrick Ginnelly & Co. Property Claims Assessors Patrick Ginnelly & Co. Property Claims Assessors

Business Interruption Claims

A red sign that reads Sorry We're Closed
Illustrative images only.

When damage to your premises stops or slows your trading, you can lose income as well as suffer damage to the property. A business interruption claim deals with that loss of income and the extra costs of keeping going. This page explains what the claim can involve.

Common causes and signs

A business interruption claim usually follows an insured event that damages your premises, such as:

  • A fire or smoke damage.
  • A flood or an escape of water.
  • A storm.
  • A break-in or vandalism.

You may notice these effects:

  • You cannot open, or you can open only in part.
  • Customers cannot reach you.
  • Stock, machinery or records are damaged.
  • You pay staff, rent and other costs while you earn less.
  • You need a temporary site or extra equipment.

What the claim can cover?

Flood water around the loading doors of a large industrial building
Illustrative images only.

Depending on your policy, a claim can include:

  • Lost income, usually the loss of gross profit.
  • Fixed costs that carry on, such as wages and rent.
  • The extra cost of working in another way, such as a temporary site.
  • Costs of speeding up the return to normal trading, where the policy allows it.

Cover depends on whether your policy has a business interruption section. It also depends on the wording of that section, and on the indemnity period, which is the length of time the policy pays for. Read these terms with care.

What to do first?

  • Deal with the damage to the property first. See our other claims for your business.
  • Keep a record of the days you could not trade, or traded in part.
  • Keep records of extra costs, with receipts.
  • Gather your accounts, such as turnover and profit and loss figures, wage records, stock records and sales records for earlier periods.
  • Write down the orders and contracts that you lost or delayed.
  • Read your policy for notice conditions. Tell your insurer as soon as you can, and within any time limit in your policy.

Where claims get difficult

These claims can be harder than the property claim, because they depend on figures. Common disputes are:

  • The size of the loss.
  • How long the loss runs, and whether it fits the indemnity period.
  • Whether the business would have earned more or less if the damage had not happened.
  • Whether the sum insured was set too low, which can reduce the payment.
  • How the insurer treats extra costs and savings.

Clear accounts and records make the claim easier to explain. We cannot promise the outcome of any claim.

How we help

As Loss Assessors, we act for you. We report the claim to your insurer and meet the loss adjuster at your premises. We put together the detailed costs of the repairs and the details of the loss. We deal with your insurer until the claim is settled.

Tell us what happened. Contact us.