Business Interruption

Simply having funds available to replace destroyed assets is not enough. Reinstating buildings and contents takes time, causing an interruption in business activities, often resulting in significant losses and possible business failure. Protection is available under a Business Interruption Policy where Gross Profit is protected for a given period, typically a minimum of 12 months but more often 24 or 36 months depending on the risk profile. Such protection allows a business to plan with confidence knowing that if the worse should happen staff can be retained, bills paid and profit maintained until recovery. We work with clients to assess exposures and to identify areas, outside of the clients control, which require protection such as key suppliers where damage at their premises could have an equally devastating effect on your business. Other areas to consider are:-

• Key customers and suppliers
• Third Party storage locations
• Electricity and Telecom suppliers
• Web and E-mail Hosting locations
• Fines and penalties for breach of contract
• Breakdown of key production equipment

Even if a company is in a development stage, without sales revenue, there is a need for protection. Any delay following damage can burn investor cash.  Key teams will need to be paid and kept together requiring additional investor funding which may not be available. Tailored policies are available to protect R&D expenditure. This provides payments for the company's costs during the interrupted period. The following related areas need to be considered:-

• Committed costs such as those with third party organisations carrying out research on your behalf
• R&D income such as grants and endowments from government bodies
• Additional costs in reworking previously completed research contracts or projects   

We have expert knowledge in establishing business interruption protection suitable for most clients. Importantly, we have extensive experience in dealing with claims and the mechanics of how any policy operates ensuring a correct and quick settlement.

For further information or a quotation please go to the contact us page.

If you are interested in disaster recovery facilities, DSM can provide a specialist service. To find out more, please follow the logo-link below to their website. 

Workplace Recovery Facilities