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Business Interruption Insurance

Business Interruption Insurance This insurance covers the loss in trade. ( Income of the insured. ) When the business to a halt. As a result of damage to insured property that affect trade. Assured The purpose of business interruption insurance is to the insured back to the same financial position as if no fire or other disaster.

Example of Business Interruption Insurance

Essentially, the business interruption insurance is the insurance to pay compensation for damage compensation income. To guarantee that the margins will not be affected by unpredictable events such as fire, flood or other natural disasters. For example, in year 2003 as the past, let’s say your company made ​​a gross profit of 120 million baht and in April of this year (year 2003) the factory was on fire. If you have property insurance along with business interruption insurance, the insurance company will pay claims as a new plant to limit compensation insurance with the company’s profit margin last year at 120 million baht.

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