Business Interruption Insurance

Additionally, to the property insurance we can provide insurance protection against the event of loss resulting from Business Interruption (economic activity interruption).

Damage of enterprise property resulting from fire, fault of water-supply systems, natural disasters, robbery, etc. can be so serious, that shall entail stoppage of production capacities, of the whole production process. As a result, there will additional losses arise:

1. Planned earlier profit shall not be obtained;

2. Despite the stoppage, the enterprise keeps current expenses, which it will bear no matter in which state the production stays.

Loss from Business Interruption (economic activity interruption) sums up from:

1. Current expenses for continuation of insured economic activity during its interruption.

Current expenses for continuation of insured economic activity are such expenses, which the Client inevitably bears during its interruption so that after reconstruction of the property, damaged or destroyed, within the shortest possible period of time to resume the interrupted economic activity in volume, existent directly before the harm was injured, which resulted to Business Interruption (economic activity interruption). Such expenses can be:

• Salary of workers and employees;
• Payments to authorities of social insurance and analogous payments;
• Rent payment for premises, equipment or other property, leased by the Client for its economic activity, unless rent payments subject to payment by lessee not depending of fact of damage or loss of the leasehold pursuant to terms of rental agreements, contracts of engagement or other similar agreements;
• Taxes and fees, for which taxable base is calculated not depending on results of economic activity of enterprise;
• Interests on credit or other attracted funds, if these funds were attracted for investments in that field of insured activity, which was interrupted in consequence of material harm occurrence;
• Depreciation charges.

2. Loss of profit out of economic activity as a result of its interruption.

Loss of profit out of insured economic activity is the profit which the Client could obtain during period of economic activity interruption, if it would not be interrupted by occurrence of material harm, including:

• manufacturing enterprises – owing to output or sale of production;
• service enterprises - owing to services rendering;
• Trade enterprises - from sale of goods;
• Owners of buildings and / or constructions – owing to rental payment;
• Insurance coverage can be provided separately only in relation to current expenses for continuation of insurance economic activity by special agreement of the parties.

Period of indemnification:

Client chooses by himself a period of time, for which possible losses form business interruptions of a company are compensated. It depends on the period for which the client, upon his assessments, can restore the property and launch manufacturing. Maximal period of liability can be established within 1 to 36 month by agreement of the parties.

Why exactly we:

• “Ingosstrakh” exists 22 years in the market;
• “Ingosstrakh” is annually recognized as leader of insurance among other companies;
• “Ingosstrakh” accomplished payments in the shortest possible time;
• There will be a personal manager assigned to you, who will make the best to solve arising questions.

 

You can order a back call from our specialist by filling out the form below: