PBI covers losses caused by flood, lightning, earthquake, aircraft, explosion, storm & falling trees, impact, malicious damage, theft and burst pipes if your business premises or buildings are damaged and you suffer an interruption to your business.
Business interruption insurance can be as vital to your survival as a business as fire insurance. Most people would never consider opening a business without buying insurance to cover damage due to fire and storms. But too many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable.
A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.
Business interruption insurance compensates you for loss of income if your company has to vacate the premises due to disaster-related damage. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.