Additional costs insurance: carrying on at an alternative location
Additional costs insurance pays not for your loss of turnover but for the additional costs you incur in order to keep going after damage: a temporary workplace, hired plant or subcontracted work.
Without obligation; a reply within one working day.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert.nl or call 072 - 509 24 56 and we will take it from there.
Work out your own premium with the calculator.
Enter your details; you will receive a proposal within one working day.
We compare the offerings of several insurers
An adviser checks whether the cover suits your activities
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
This policy is intended for businesses whose turnover is not tied to one building. A consultancy, an installation business, an accountancy office or a wholesaler with an external stock location can carry on elsewhere after a fire. Turnover then largely runs on, but at higher costs: rent of replacement space, hired equipment, extra transport, overtime, subcontracting to a fellow business.
That difference is exactly what makes this form cheaper than cover for full loss of turnover: you insure a cost item instead of a profit margin. The sum insured is the total of what it realistically costs you to keep going during the indemnity period, not your gross profit. If your turnover is tied to one location, this form does not cover the problem and you need business interruption insurance needed.
As with business interruption cover, there must first be covered material damage to your building, contents or goods. The insurance supplements the buildings and contents cover rather than replacing it; the rebuilding and the replacement of your property run through those policies.
The structure of the cover in three parts, with an overview per situation below.
The basics
Liability
AVB for property damage and injury, BAV for professional errors.
Damage to third parties
Employers' liability
Care, custody and control as an extension
Your business
Assets and continuity
Business contents, goods and lost turnover during downtime.
Business contents at replacement value as new
Goods at cost price
Business interruption or additional costs
If you employ people
Staff
Sickness absence, accidents and the traffic risk.
Continued pay for 104 weeks
Group personal accident
WEGAS for traffic risks
What is covered
Situation
AVB
BAV
Cyber
Injury to a visitor or customer
Yes
No
No
Damage to a client's property
Sometimes
No
No
Financial loss caused by an advisory or calculation error
No
Yes
No
Downtime after a ransomware attack
No
No
Yes
Data breach involving personal data
No
Sometimes
Yes
Damage to property in your care
No
No
No
This overview is general in nature and is not personal advice. What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) of the insurer; you receive both before you take out cover. Taking out cover without advice? Then read what execution only means for you.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
Only costs that limit the loss
What is paid are the additional costs that demonstrably serve to continue the business or to resume it sooner. A loss adjuster tests that against what you would have spent without the damage. Costs you had planned anyway, improvements on the old situation and investment in the temporary location that you keep afterwards do not fall under it. So from day one record what you are hiring or subcontracting, and why.
Arrange the fallback location before you need it
The cover assumes there is an alternative somewhere. So know in advance which space, which equipment and which fellow business can be called on, and whether your systems can be reached from outside the building. A business with equipment requiring a permit, a kitchen or a production line cannot simply move elsewhere; this form is then too narrow and does not cover the real standstill.
Loss of turnover remains for your own account
If you lose turnover despite moving elsewhere, this policy does not pay for that loss. Penalties, contractual reductions and the loss of customers who go to a competitor also fall outside. Businesses with a mixed profile therefore sometimes choose a combination: basic business interruption cover for the unavoidable loss, with an additional costs section for the extra costs of limiting that loss.
Digital interruption without fire falls outside
The trigger is material damage. If you are at a standstill through ransomware, a failure at your hosting provider or a power cut outside your site, there is no physical damage to your own property and this policy does not pay the costs of moving elsewhere. If you want to cover that situation, it belongs on cyber insurance with a section for restoration and relocation costs. Report a loss within the period set by Article 7:941 of the Dutch Civil Code.
What does your premium depend on?
Sum insured for additional costs — The estimate of what keeping going from an alternative location realistically costs.
Indemnity period — The period during which additional costs are paid, generally shorter than on business interruption cover.
How far you are tied to a location — How easily your work can be continued elsewhere without a permit or a fixed installation.
Nature of the business assets — Standard equipment can be hired; specialist machines have long delivery times.
Fire risk of the premises — Construction, compartmentation and detection determine the likelihood of the cover being called on.
Excess or waiting period — A waiting period in days before payment begins lowers the premium.
Insurers weigh these details differently. That is why comparing pays off.
How we arrange it
You request a quoteWe take stock of your activities, turnover and wishes.
We compareseveral insurers, on premium as well as conditions.
You receive a proposalWith an explanation of the differences and the exclusions.
We arrange the switchIncluding cancellation, so there is no gap in cover.
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
When do I choose additional costs instead of business interruption cover?
When your turnover is not tied to one building and you can keep going with a temporary workplace, hired plant or subcontracting. That is often the case for consultancy, installation and trading businesses. If your turnover is tied to the location, as with a shop, a restaurant or a production line, business interruption insurance remains necessary; additional costs cover does not cover that standstill.
Which costs exactly are paid?
Additional costs that serve to continue the business: rent of replacement space, hired machinery or vehicles, extra transport, temporary IT facilities, overtime and work you have carried out by another business. It is always the difference from what you would normally have spent. Costs you would have incurred without the damage as well do not count.
Does this policy pay for rebuilding my premises?
No. Repair of the building runs through the buildings insurance (opstalverzekering) and replacement of machinery, contents and stock through the business contents or goods insurance. Additional costs insurance is intended solely for the additional costs during the period in which you cannot use your own location. Improvements to the temporary location that you keep afterwards are not paid for either.
Does the cover apply to a breakdown or a cyber attack as well?
Only where covered material damage to your property underlies it. With ransomware, a hosting provider out of action or a power cut outside your site, that physical damage is missing and the policy does not pay. Costs of moving elsewhere after a digital incident should be arranged on cyber insurance, where they fall under restoration and continuity costs.
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
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