Okuzeka
Insurance vocabulary · Property & Liability

Business interruption

Meaning in insurance, with examples

nounCommon term

In insurance, business interruption means: Insurance that pays for lost profit and continuing costs when a business has to stop or slow down because of insured damage, such as a fire.

In Turkish: kar kaybı, kar kaybı teminatı, iş durması teminatı

How it is used

Usually bought together with property insurance and often shortened to BI. The insurer and client agree an indemnity period, such as 12 or 24 months. Claims require accounts showing what the business would have earned.

Example sentences

  1. Business interruption cover paid the staff salaries while the factory was rebuilt.

  2. Many small firms don't buy business interruption insurance until it is too late.

Common collocations

  • business interruption insurance
  • business interruption cover
  • indemnity period
  • loss of profits
  • property insuranceInsurance that covers buildings, equipment, stock and other physical assets against damage or loss from events such as fire, flood, storm and theft.
  • fire insuranceInsurance that pays for damage to buildings, equipment and stock caused by fire and often by related events such as lightning and explosion.
  • indemnityPayment that puts the insured back in the same financial position as before the loss, no better and no worse; also the principle behind such payment.
  • sum insuredThe maximum amount an insurance company will pay under a policy, usually based on the value of the property or the amount chosen for a life policy.

More terms: Property & Liability

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This page explains English vocabulary for learners. It is not financial advice.