The business will be affected as a result of a loss due to the risk of fire and the damages it may cause. There will be certain standing charges that will continue to be incurred irrespective of the situation that the insured is placed in. These expenses such as Rent, Salaries, Electricity and other standing charges will still need attention in addition to the loss of revenue. The insured suffers financial losses due to loss of gross profits on account of reduction in turnover and increased cost of working during the period of interruption.
In order for a “Business Interruption cover” to operate; it is compulsory to have a Property All Risks or Fire Insurance Policy. This cover takes into consideration the following aspects which should be addressed when opting for this cover: