The asset is restored. The revenue gap stays open.
Business interruption (loss of profit) cover responds to the financial consequence of an insured physical loss, lost gross profit, continuing fixed costs and the increased cost of working during the indemnity period. Setting the right indemnity period and gross-profit basis is where most programmes fall short, leaving a gap precisely when revenue stops.
Exposure profile
Where this risk lands on your balance sheet.
The exposures we evaluate first when scoping a programme against this risk.
01
Lost gross profit during downtime
The core exposure, the margin you cannot earn while operations are suspended.
02
Continuing fixed costs
Wages, rent, EMIs and overheads run on even when production does not.
03
Supplier & customer dependency
Contingent BI responds when a key supplier or customer is the one that suffers the loss.
04
Under-set indemnity period
A 6-month indemnity period on a 14-month rebuild leaves the balance uninsured.
Industries most exposed
Who carries the most of this risk.
The sectors where this exposure is most acute, each links to its industry page.
Ask how long you could not trade before the position became irrecoverable, and what you would still be paying during that time. If the answer to the first is months rather than weeks, and the answer to the second includes wages, rent and loan instalments, the exposure is real and it is larger than the building.
Frequently, yes. A shed can be rebuilt for a known figure. The margin not earned across the months of rebuilding, commissioning and winning customers back has no ceiling of its own, and unlike the building it does not appear anywhere on the balance sheet until it is gone.
By gross profit on the insurance definition, which is turnover less the costs that stop when production stops. That figure, scaled to how long recovery would actually take, is the exposure. Using the accounting gross profit understates it, which is the most common way this is got wrong.
Concentration. A single plant, a single critical machine with a long replacement lead time, one customer taking most of the output, or one supplier providing an input nobody else makes. Each of those turns a contained physical loss into a long stoppage.
It means the frequency is low, which was already known. Exposure is about severity: what one event would cost if it happened. A business that has never stopped and could not survive stopping is carrying the highest exposure of all, not the lowest.
Find your cover
Five questions. A starting programme. No obligation.
Step 1 of 5
Are you placing cover for a business or for personal lines?
What is the scale of the operation?
Who is the cover for?
What worries you most? (pick up to three)
When does your current cover renew?
Anything specific we should know?
Optional. Sector, location, prior claim history, current insurer, whatever frames the engagement.
Your starting programme
Based on what you told us, here is the cover that fits.
This is a starting position, not a quotation. A short call with an advisor will refine it against your actual exposure, claim history and contract obligations.
Raksha AI’s note
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A guide to what an advisor weighs, not a price. Your exact premium is confirmed after a quick review.
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