Business Interruption Insurance. Protected Revenue.
If a fire or flood forced you to close for three months, could you still pay your rent and wages? Business interruption cover ensures your income does not vanish if disaster strikes.
Get in touchWhat is business interruption insurance?
Business interruption insurance covers lost revenue and ongoing costs if your business is forced to shut down due to a covered event such as fire, flood, theft or other damage to your premises or equipment.
It pays your lost gross profit for the period during which you cannot trade, plus your fixed costs such as rent, salaries, rates and loan repayments. It effectively bridges the gap between when an event happens and when you can resume normal business.
BI is usually purchased as an add-on to a buildings and contents policy, but it can also be standalone. The key to getting BI right is choosing an indemnity period long enough to cover your recovery time.
What is covered
- Lost gross profit during closure
- Fixed costs (rent, rates, salaries, loans)
- Additional costs of working from temporary premises
- Increased costs of operating temporarily
What is not covered
- Denial of access (loss from nearby event)
Available as optional extension
- Loss of a key person
Separate product — not BI insurance
Who needs business interruption insurance?
Retailers and hospitality
Businesses that generate all revenue from footfall need cover if premises are damaged and closure forces income loss
Manufacturers and production
Businesses dependent on specific equipment or premises need cover if production is halted by damage
Any business with significant fixed costs
If you have rent, staff wages, loan repayments or other fixed outgoings, BI cover protects these when revenue stops
Businesses in flood-risk or high-fire-risk areas
Higher likelihood of damage means BI cover is especially important
How much does business interruption insurance cost?
Usually 15–25% added to your buildings and contents premium; standalone BI cover for a small business typically runs £200 – £800 per year
Length of indemnity period chosen
high impactA 12-month indemnity period costs less than a 36-month period. But if a major rebuild takes 18 months and your cover ends at 12, you bear the rest yourself. Underestimating recovery time is one of the most common BI mistakes.
Gross profit or revenue insured
high impactBI cover is calculated on your gross profit or turnover. Underinsuring the sum means you will receive proportionally less when you claim — even if your losses are higher.
Type of premises and rebuilding complexity
medium impactA listed building or specialist production facility may take longer to restore than a standard commercial unit, increasing your BI exposure and premium.
Dependency on key suppliers or locations
medium impactSome policies offer supply chain or denial of access extensions, which cost more but provide cover when the trigger event happens to a neighbouring property or key supplier.
Industry sector
low impactHospitality businesses with entirely footfall-driven revenue suffer faster income loss than professional services firms that can work remotely. Insurers price this differently.
WHY CECIL
Built differently.
Get the indemnity period right
One of the biggest BI mistakes is choosing a period too short. We help you calculate how long recovery will take — not just rebuild time, but restoration of your customer base and operations.
Avoid underinsurance
BI works on a proportionality basis: if you underinsure your sum, you recover proportionally less. We help you calculate the correct sum insured on gross profit.
Understand the triggers
BI insurance is triggered by damage to your property. We explain which events trigger cover (fire, flood, theft, storm) and which do not (loss of contract, economic downturn).
Specialist advice for your sector
Recovery time for a restaurant is completely different from a manufacturer. We make sure your policy matches your business type and recovery reality.
Real claims: what business interruption insurance covers
A restaurant suffers kitchen fire damage and must close for 11 weeks during repairs
The BI policy covered lost weekly revenue, ongoing rent, staff wages retained during the closure, and the cost of temporary trading arrangements while the main premises was restored
£94,000 total BI claim over the indemnity period
A retail shop floods in winter, closing it for 6 weeks during refurbishment
The policy covered lost gross profit during the closure period and the additional cost of working from a temporary location
£41,000 total BI payout
A manufacturer's specialist machinery is damaged by an electrical fire, halting production for 8 weeks
The policy covered lost contribution for the interruption period
£78,000 total claim
Common questions about business interruption insurance
What is business interruption insurance?
Business interruption insurance covers your lost income and ongoing costs if your business is forced to cease or reduce trading due to damage to your premises, equipment or stock. It covers the period between when the damage occurs and when you can resume normal business.
What does business interruption insurance cover?
Business interruption insurance covers lost gross profit and fixed costs such as rent, rates, salaries, loan repayments, insurance premiums and other ongoing outgoings during the interruption period. It can also cover the additional cost of working from temporary premises.
How much does business interruption insurance cost?
BI cover is usually 15–25% of the cost of your buildings and contents premium, or roughly £200–£800 per year for a small business depending on turnover and indemnity period.
Is business interruption insurance worth having?
Yes. A single serious incident — fire, flood, or major equipment failure — can shut you down for weeks or months. Without BI cover, you still have to pay rent and wages while earning no revenue. One incident without cover can destroy a business.
Does business interruption insurance work alongside my buildings policy?
Yes. BI cover is almost always purchased alongside a buildings and contents policy and is triggered by the same insured events. Some insurers require both to be held with them.
How do I calculate the right sum insured for business interruption insurance?
The sum insured should equal your gross profit (turnover minus variable costs) for the indemnity period you choose. If you choose a 24-month indemnity period and your annual gross profit is £150,000, you should insure for £300,000. Many businesses underinsure this figure — your last set of accounts is a useful starting point.
What is an indemnity period and how long should mine be?
The indemnity period is the maximum length of time a BI policy will pay out after a claim. It should be long enough to cover the full recovery of your business — including rebuilding premises, replacing equipment and rebuilding your customer base. For most businesses, 24–36 months is commonly recommended. A 12-month period is often too short.
Does business interruption insurance cover loss of a key person?
Standard BI policies do not cover income lost due to illness or death of a key person. Key person insurance is a separate product that addresses this risk.
Does BI insurance cover a loss of contract?
No. Business interruption insurance requires a physical event (fire, flood, etc.) to trigger the cover. Pure contract loss or economic downturn is not covered.
What is a denial of access extension?
A denial of access extension covers income loss if access to your premises is prevented by a notifiable event happening nearby — such as a fire at a neighbouring property causing a road closure. Without this extension, the trigger must be physical damage to your own property.
Industries that need this cover
Business Interruption Insurance is commonly required across these sectors.
Interested in Business Interruption Insurance?
We will be in contact when Cecil launches.