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Lbia Guide To Business Interruption Insurance And Claims

Preface

This guide has been sponsored by the London Business Interruption Association to build on the work produced by the industry’s experts, Messrs Hickmott and Riley in their well-known textbooks on the subject. There is a need to continually update reference books such as this and our intention is that the Association will be the lifetime editorial resource to make sure it is regularly reviewed and updated to take account of market changes and innovations.

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Business Interruption Wordings – Commonly Asked Questions

What does the term “Business Interruption” mean?

Business Interruption insurance is coverage that protects a business in the event of natural disaster, fire or other circumstances insured under the Material Damage section of a policy which result in a break in their commercial activities and their consequently being unable to maintain their turnover or income.

A “break in commercial activities” means an insured being either unable to trade or being forced to continue trading under reduced or differing circumstances which would have a direct effect on the turnover of the business...

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