Business Interruption InsuranceEven minor property damage can cause major financial damage if it interrupts the normal operations of your company.
Secures the continuity of business and operating profit
Business interruption insurance policies allow you to secure your business against profit loss and ensure salary payment if your company’s operations are suddenly interrupted.
Quickly recover your company’s operations
The impact of the damage on the interruption of business can be minimised and your company can recover its operations as quickly as possible.
Ensuring the profits and operations of your company will keep customers, shareholders and partners happy.
Business Interruption Insurance keeps your business running
The continuity of your business may be at risk if there is a fire on the company’s premises, a pipe rupture causes water damage or manufacturing equipment breaks down, for example. Business may also be interrupted if a key employee falls ill or is injured in an accident and loses the ability to work. You can prepare for risks of this kind by taking out Business Interruption Insurance.
When a sudden loss stops your business, it may take a long time before business is fully recovered. During that time, your company’s revenues may decrease while costs increase.
Even when your business is interrupted, you still have to pay the company’s fixed costs, such as salaries, loan repayments and rents for premises or equipment, as agreed. Business Interruption Insurance offers your company financial security so that it can continue its operations in spite of the interruption.
Business Interruption Insurance allows you to secure your business against profit loss and ensure salary payment
Even minor property damage can cause major financial damage if it interrupts the normal operations of your company. It pays to prepare beforehand for profit losses caused by business interruptions. Business Interruption Insurance covers profit losses when your company’s operation is disturbed or stopped by a sudden, unforeseeable event.
The interruption may be due to property damage, such as a fire, on the company premises. The profit loss covered by the insurance is obtained by deducting variable material and service charges from your company’s net sales, including rents, interests, wages and social expenses.
Business Interruption Insurance also allows you to secure your company’s ability to pay salaries, so you do not have to lay off employees for the duration of the interruption. This helps you keep skilled personnel in the company.
There may also be other reasons for the interruption of business
Rental income interruption insurance
Rental income interruption insurance secures you against the loss of rental income if property damage occurs on your premises. The rental income interruption insurance ensures that you receive rental income from rented properties or parts of them if they become unfit for use as a result of damage.
Insurance for business interruption due to disability
Insurance for business interruption due to disability helps you prepare for a situation where your company’s business is interrupted due to the disability of a key employee resulting from an illness or accident. In that case, the business interruption insurance compensates any profit loss incurred by your company, as well as salary costs so that you can hire a replacement. The insurance does not cover medical treatment expenses.
We recommend that you complement your employees’ insurance cover with our extensive personal insurance policies. For example, you can take out Group accident insurance to cover your staff outside of work. In case of illnesses, we recommend Health Insurance,which is our comprehensive medical expenses insurance that covers medical treatment and examination expenses caused by illnesses. With Disability insurance, you commit your employees and secure their finances.
Contingency business interruption insurance
Contingency business interruption insurance provides cover if a fire occurs on the premises of a supplier, subcontractor or customer with a direct business relationship with your company and interrupts your company’s business fully or partly. For instance, fire on a subcontractor's premises may interrupt product deliveries, which stops your company’s business and causes profit losses to your company.
Interruption due to contagious disease insurance
Interruption due to contagious disease insurance is intended for sectors where foodstuffs are handled, such as the food industry and restaurants. The insurance provides cover if the interruption of business is due to a binding order issued by the Finnish authorities under the Communicable Diseases Act, the Animal Diseases Act or the Food Act.
Our experts are happy to tell you more and help you find the most suitable insurance solution for your company. Request a quote and we will contact you soon!
How is the price of business interruption insurance determined?
The premium of business interruption insurance depends on the following factors, among others:
- object of insurance (profit margin, rental income, additional expenses, etc.)
- the company's line of business
- the building category and technical protection solutions (such as sprinklers and fire detectors)
- extent of coverage: all risk insurance or only specific types of damage (such as fire, burglary, water damage, etc.)
- the amount of deductible chosen
- indemnity period
Our experts at Pohjola Insurance have an extensive understanding of the sector and can provide more information about the content and price of business interruption insurance and available additional covers.
Qualifying period of Business interruption insurance
Business Interruption Insurance policies usually apply qualifying periods. Depending on your company's needs, we can also agree on a deductible.
The selected indemnity period for which compensation is paid begins after the expiry of the qualifying period. You should choose a period of liability that is as long as possible: you should not only take into account the time it takes to repair the technical fault, but also the time it takes to bring sales back to the level before the loss.
In the op.fi service, you can easily and safely manage all of your company's insurance transactions. The service allows you to, for example
- report a loss and see how your loss report is processed
- print out certificates of insurance
- order a Green Card for company vehicles
How to activate the Internet Service:
- Sign the Agreement for Digital Transactions and name the administrators.
- Administrators can add other users and their access rights to the service.