Following a loss of equipment or premises, a business may not be able to trade as normal until a replacement has been made.
At the beginning of the marquee season, the production lead time of suppliers can be lengthly, causing a major disruption. Business Interruption insurance enables a company to claim for resultant loss of ‘Gross Profit’ or ‘revenue’ relating to contracts which it cannot complete. The insurer can often minimise the claim by enabling the insured to complete contracts by funding the temporary hire or replacement equipment, i.e. the increased cost of working. This is also beneficial to the marquee company as their clients will not be let down, enabling future repeat business and recommendations.