Comprehensive Machinery Insurance (CMI) & Business Interruption Insurance (BI)
Business interruption (BI) insurance is a vital form of coverage that protects a company's financial stability when its operations are disrupted by a covered event like a natural disaster, fire, or equipment failure. This policy acts as a safety net, compensating the business for lost income, ongoing fixed expenses (such as rent and payroll), and any extra costs incurred to get back up and running. KEY COMPONENTS: BI insurance typically covers three main areas: Lost Profits: It replaces the profit the business would have earned had the interruption not occurred. This calculation is based on the company’s financial history and future projections. Continuing Expenses: It covers the fixed costs that a business must continue to pay even when it's not operational, including rent, loan payments, and employee salaries. Extra Expenses: This includes any costs beyond normal operating expenses that are necessary to minimize the interruption and get the business back to its normal ...