Under business interruption insurance, a company can be protected with respect to loss or damage resulting from an interruption in its business activity or from a decrease in its turnover if this interruption in its business activity or decrease in its turnover has been caused by an insured event under property insurance. Under a property insurance contract, a company may be protected against the following risks: fire, water, burglary, storm, flood, vandalism or risks under total risk insurance.
Under business interruption insurance, indemnification is provided for loss of operating profit due to an interruption in business activity, for fixed costs during the period of loss or damage (including employees’ pay including state taxes), or for any other agreed income or expenses.
Business interruption insurance is sold only together with company insurance, for the same insurance period.
Since business interruption insurance is, as it were, financial risk insurance, the insurer wishes to examine the balance sheet and income statement of the company for the past few years before a prospective insurance contract is concluded.