Business Interruption Insurance

What is business interruption insurance?

Business interruption insurance is also commonly known as “business income insurance” and helps to reimburse expenses and profits from unexpected events that disrupted business operations. Some example of such bad events can be fire, natural disaster, government-mandated closure due to 3rd party factors.

This insurance is usually included in other packages such as Industrial All Risks etc.

What does business interruption insurance cover?

A business interruption insurance may cover the following:-

1. profits that would have been earned under normal conditions
2. fixed costs that is incurred regardless of non-operation days.
3. a temporary location that the business have to move to, including the expenses of transportation of facilities over
4. training costs for new usage of facilities, equipment or machinery
5. extra expenses that are incurred due to the business interruption event

Do I need business interruption insurance in Singapore?

No if you have already purchased industrial all risks or other similar comprehensive insurance package that protect your companies from events that can financially ruin you.

If you do not have such package, it is better to seek it in a comprehensive package to reduce your premiums payable. Do contact us for to seek how you can reduce the costs of insurance.