Revenue and gross profit
Understand where income is generated, the margins that must be protected and the standing charges that continue when trading is reduced or stopped.
BUSINESS INTERRUPTION INSURANCE
The cost of a loss continues after the physical damage is repaired.
A fire, flood, equipment failure or supplier disruption can stop a business from trading long after the immediate incident. Business interruption insurance should be assessed against the time, cash flow and dependencies needed to recover.
Start your insurance conversationTHE DECISION
Define the trading interruption before discussing the insurance response.
We structure the facts that influence an interruption: revenue generation, fixed costs, gross profit basis, production capacity, critical suppliers, alternative premises and realistic recovery periods. This supports a more grounded insurance conversation, subject to policy wording and underwriting requirements.
WHAT WE EXAMINE
The facts that shape the insurance decision.
Indemnity period
The recovery period needs to reflect procurement, approvals, rebuilding, recommissioning, customer retention and the return to normal trading.
Critical dependencies
Key suppliers, utilities, logistics, technology platforms and customer sites can create interruption exposure beyond the insured premises.
Mitigation options
Alternative premises, stock, suppliers, manual workarounds and recovery decision rights can change the severity and duration of a disruption.
Evidence and assumptions
Current management accounts, forecasts, contracts and documented operational assumptions make it easier to explain the exposure.
Continuity planning
Insurance is one part of resilience. Incident roles, communications, recovery priorities and tested continuity plans remain important.
COMMON QUESTIONS
Business interruption insurance questions, answered clearly.
What is business interruption insurance?
Business interruption insurance may address certain financial consequences of an insured interruption. What is insured, when it responds and how a loss is calculated depend on the policy wording, extensions, exclusions and insurer decision.
How long should the indemnity period be?
It should be considered against the business’s realistic recovery timeline, rather than only the repair period. This can include rebuilding, replacing equipment, restoring suppliers and regaining customers.
Does business interruption cover every operational disruption?
No. The insured triggers and exclusions are defined by the specific policy. Dependency, cyber and utility events should be discussed explicitly rather than assumed.
RISK IMPROVEMENT PROGRAMMES
Insurance is not the end of the risk conversation.
insurance.net.za works with clients after placement to keep addressing the exposures that matter. We turn recommendations into owned actions, coordinate the right expertise and maintain the evidence behind a stronger risk record.
Move from recommendation to action
Prioritise practical improvements by their likely effect, cost, urgency and feasibility rather than letting important actions drift.
Keep the right people connected
Bring accountable owners, maintenance teams and specialist providers together around a clear scope, target date and completion record.
Make progress visible
Keep insurer requirements, control evidence, outstanding decisions and changes in the risk together for the next insurance conversation.
START WITH THE FACTS
Bring us the risk that needs a more considered answer.
Tell us enough to understand the situation. A specialist will respond to arrange a confidential, no-obligation discussion.