Any interruption, big or small, can have major repercussions for your business. Even if the business interruption only lasts a few hours, it can still be significant, and very costly. Thankfully, these setbacks can be easily mitigated with business interruption insurance (also known as BI Insurance).

What is Business Interruption insurance?

BI insurance covers you against loss of income following damage to your premises in the event that something goes awry. Even the most prepared and risk-averse businesses can suffer losses due to factors that are outside of their control. For example, freak weather such as fire or flood could mean that the business is out of action for a number of days. If you are properly covered however, then you will be reimbursed for the income lost during this time. However, in order to remain fully compliant, it is important to watch out for these five common mistakes:


It is important to review your sum insured to make sure that it takes into account any anticipated growth that the business is likely to experience during the indemnity period – it should reflect your estimated income for the upcoming 12 months. For 24 months, the sum insured should be twice the estimated annual income. Failure to take this into consideration could mean that you do not receive the amount needed to cover your losses.

Consider indemnity period

The indemnity period is the amount of time that the insurer will provide you with cover in the event of a claim. It is important to carefully consider how long it will take to return to business as usual. This could include the time taken to replace machinery or undertake regeneration work to a building.  If you are unsure, then it is wise to err on the side of caution, to ensure you are properly covered for the right duration of time.

Not reading the policy carefully

It is important to carefully read the policy and ask any questions beforehand, to ascertain exactly which types of damage is covered. It is also important to read the policy to see how many days you have to submit your claim.

Not documenting the full extent of the damage

If an incident has occurred, before you even begin to start the clean-up process, it is important to take photographs of any damage – this is to give an accurate report of what has happened. It’s also important to keep damaged items as a record until the claim has been processed.

Not providing adequate information

It is crucial to be as thorough as possible when it comes to your claim. If possible, include an account of how the incident occurred and any additional information that you deem necessary to mention.

About SEIB

SEIB have been arranging tailored insurance for funeral directors and associated trades for over 40 years, giving them expert insight into the risks faced by such a unique industry. We can equip you with everything you and your funeral service business needs, including business interruption and loss of revenue up to £2 million for a maximum of 24 months.

If you would like to learn more about protecting your business with business interruption insurance, please contact us on 0345 450 0648 or email