Expertises

Business interruption insurance is a property insurance policy which, in the event of a business interruption, compensates the policyholder (CC) for the financial disadvantage incurred as a result of an insured event (fire, water, theft).

The aim of the business interruption insurance is to put the damaged business in the same financial position as if the damaging event had not occurred. The requirements for this are that both a sufficiently high sum insured and a sufficient period of liability have been contractually agreed in advance.

The insurance covers the so-called gross underwriting profit (production, service or trading income less variable sales or production costs) in the event of a partial or total interruption of the insured business. The savings in fixed costs achieved due to the loss event are to be deducted from this. During a contractually agreed period of liability, the result is sufficient to compensate for the ongoing fixed costs (such as personnel expenses, rents, interest on debts, etc.) and the lost operating profit that would have been generated if operations had not been interrupted. The business situation, market position and order situation prevailing during the interruption period shall be taken into account in calculating the loss.

The costs of loss mitigation measures taken are also compensated (overtime surcharges, establishment of temporary or emergency operations, costs of rented equipment, etc.). The liability period depends on the particular needs of the company and is usually contractually agreed for a period of 12 to 36 months. The sum insured is determined with regard to the maximum damage to be expected within the agreed liability period.