Expert Insight
WHY WE SHOULD KEEP FAITH WITH BUSINESS INTERRUPTION INSURANCE
Many people may have lost faith in business interruption after the difficulties faced over payouts for COVID-19. But it’s important to remember that there are many other reasons you might need this cover for when you are back up and running.
With markets hardening and the recent dispute in payouts for Covid-19, many people may have a troubled view of business interruption (or BI) insurance. But it’s important to remember why it’s necessary for when nightlife is back up and running.
When our nightlife businesses restart after lockdown, there is expected to be a surge in demand. From nightclubs to beer gardens to hotel rooms, after month’s of lockdown, we’ll see a steady flow of customers back into the industry. With this increased demand, there will be increased risks. Even when the impact of coronavirus begins to wane, it’s important not to forget the other ‘unexpecteds’ that could affect your venue.
No doubt if you search online for information on business interruption, you will find a mass of data about the recent Supreme Court case filed by the FCA. Yet, business interruption insurance is a wide and varied sector. It aims to cover any financial losses caused by an obstruction to normal working practice. These policies are able to insure you for the initial loss of property and equipment, throughout the restoration period and even up until you begin to regain your original expected earnings.
The sudden surge in demand post-lockdown brings with it an increase in risk. Nightlife businesses must be ready, making sure that they don’t disregard business interruption because of the tarnish put on it by rejected coronavirus claims.
30 February 2021
www.venue-insight.com
There are many other ways your trading could be halted, and if the last year has proven anything, it’s that the unexpected can always be just around the corner.
The range of perils included in most BI coverage includes fire, explosion, storm, and flood. Actions can be taken beforehand to minimise damages, often however, a loss of earnings is inevitable. In recent years, a client of NDML experienced a fire in their hotel property which caused multi-million pound damages. Over the next two years they received compensation for the restoration of the site and for the yearly profit they had lost thanks to a comprehensive and well managed business interruption policy.
Business interruption insurance can also stretch to losses sustained for direct damage to gas, water, internet or telephone services. Venue owners must not forget that each of these risks will still exist when we reopen again. And in what will be an important period for the regrowth of the nightlife industry, it’s essential to not let anything get in the way.
Now is the ideal time to review your insurance cover and assess your business interruption policy. NDML has fought successfully to get many of it’s business interruption claims paid following coronavirus, so to find out more about how you can benefit from this dedication, visit their website or call 0344 488 9205.
ndml.co.uk
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