What is business insurance?
Business insurance is essential, and in some cases against the law. Business insurance protects businesses against the losses suffered in the course of their normal activities, particularly when the business faces a compensation claim. Covers include professional indemnity insurance, public liability insurance, and employers` liability insurance.
Do you need it?
The main risk of operating a business without any cover is that you will lose money. This may be through replacing or repairing damaged property, paying compensation or not being able to trade as you normally would.
By investing in suitable protection, not only will your business interests be covered, but having insurance to protect you financially against accidents, mistakes, theft, damage and legal fees can provide valuable peace of mind, so for that reason alone should always be considered.
What is business interruption insurance and how has Covid-19 affected it?
Business interruption insurance (BII) covers loss of income suffered by a business because it has had to close or restrict activates due to certain events. The Coivd-19 pandemic has caused many businesses` activities to be interrupted and income to be lost. Some of these businesses had business interruption insurance (BII) policies and have made claims to their insurer. However, policies vary significantly and while some business have been covered in the circumstances of their claim, other haven’t.
What effect has Coivd-19 had?
Many companies have made claims under business interruption insurance policies as a result of COVID-19. Many insurers maintain that their policies were never intended to cover (unprecedented) business interruptions caused by government measures to control a pandemic like COVID-19.