Gross profit · indemnity period ·. The material damage condition
Business interruption insurance through Klaverblad
Business interruption insurance pays only once something has first been damaged by an insured peril. That link determines what it is worth to you.
- Several insurers compared objectively
- 9.5 customer rating for a new policy
- AFM licence 12016589
- Personal 072 - 509 24 56, weekdays 9–17
Deze pagina in het Nederlands: Bedrijfsschadeverzekering via Klaverblad.
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 for yourself what it would cost.
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
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
Finass acts as an intermediary for Klaverblad's business range and is not tied to that company. We set more than thirty insurers side by side and the choice follows from what you need to cover. Business interruption insurance pays the gross profit you lose after your business comes to a standstill through fire, storm, burglary, water or another covered cause. Gross profit is a technical term here: turnover minus the variable costs that fall away during a standstill. The fixed costs and the net profit therefore run on and are paid. You can read the general structure on the hub page on business interruption.
The most important provision comes at the front of every policy: there must be preceding material damage to your building, contents or goods. If your production is at a standstill because a customer goes bankrupt, because a licence is withdrawn or because there is a shortage of staff, nothing has been damaged and the insurance does not pay. That is not a borderline case but the most common reason why a claim is rejected.
The second point is the indemnity period. You choose that in advance, usually in periods of fifty-six weeks or longer. The period must cover the whole time from the date of the loss to the moment your turnover is back at its old level, including demolition, the permit application, rebuilding, refitting and winning customers back. With premises having a special use, or a plant with long delivery times, the standard period is often too short. See also the business contents and goods insurance, because those two policies are called on together in the same event.
This page deals with one situation. The full overview is on Compare business interruption insurance.
What to look out for
Four provisions that determine whether a standstill actually leads to a payment.
No material damage, no cover
A failure of the electricity network outside your site, a road closure at your door, a government measure or a pandemic does not lead to payment, however large the loss of turnover. Some insurers offer a limited extension for failure of utilities or for the premises becoming unreachable. Ask about that separately. It is not included as standard.
The sum insured has to be right
If the gross profit declared is lower than the actual figure, the underinsurance applies and payment is made proportionately. Work with up-to-date annual accounts and allow for growth during the term. Article 7:960 of the Dutch Civil Code at the same time prevents you from receiving more than your actual loss, so a sum that is too high only produces extra premium.
Prevention requirements are conditions of cover
The policy schedule usually states requirements for burglary protection, fire detection, firefighting equipment, storage of flammable waste and periodic inspection of the electrical installation. If you do not meet them when a fire occurs, that affects not only the fire damage but also the business interruption loss that follows from it. Record inspections and remedial action in writing.
Reporting and cooperating
Article 7:941 of the Dutch Civil Code requires you to report the loss as soon as you are reasonably aware of it, and to co-operate in the assessment. With business interruption that means making your records available and limiting the loss where you can. If your business operations change during the term, report it. The duty of disclosure under Article 7:928 of the Dutch Civil Code and the consequences of this in Article 7:930 of the Dutch Civil Code apply to every loss.
What does your premium depend on?
- Gross profit insured: the basis, to be reviewed each year
- Indemnity period chosen: fifty-six weeks or longer
- Construction type and compartmentation: determine how quickly a fire spreads
- Sector and production process: a bakery has a different interruption risk from an office
- Prevention and security: sprinklers, fire detection, burglary class
- Excess in days: business interruption cover often works with a waiting period
Insurers weigh these details differently. That is where your saving is.
What is covered
| Situation | Standard cover | With extensions |
|---|---|---|
| A fire in the kitchen brings your restaurant to a halt for two months | Yes | Yes |
| After a burglary the till and refrigeration equipment are destroyed and you stay closed for three days | Yes | Yes |
| A digger in the street hits the main cable and you are without power for two days | No | Provided that |
| The police close off your shopping street for a week after a fire next door. Your premises are undamaged | No | Provided that |
| Your largest customer goes bankrupt and your turnover halves from one month to the next | No | No |
| The rebuilding takes longer than the fifty-six week indemnity period chosen | No | Provided that |
Without a damaged building, contents or stock this policy does not come into play, however large the loss of turnover.
Frequently asked questions
This is what people ask us most.
What counts as gross profit on this policy?
Not the gross profit from your annual accounts, but turnover less the costs that actually fall away during a standstill, such as the purchase of goods and energy for production. Fixed costs such as rent, interest, depreciation and salaries run on and belong in the sum insured. Have that calculation supplied by your bookkeeper and review it each year, because an out-of-date figure leads to a proportionate reduction when a loss occurs.
Is failure of my IT or a hack covered?
No. A ransomware attack or a fault in software damages no physical property within the meaning of this policy, so business interruption insurance does not come into play. For business downtime after a digital incident there is separate cover on cyber insurance. Damage to hardware through fire or water is covered, and the business interruption loss then simply follows from it.
What if I can carry on working elsewhere after the damage?
Then you reduce the loss, and that is exactly the intention. Costs you incur to limit the standstill, such as temporary accommodation or subcontracting, are usually paid in so far as they reduce the loss of gross profit. For businesses that mainly incur costs and lose little profit, additional costs insurance is a more suitable form.
Does the cover continue if I leave the premises empty for a time?
Vacancy, refurbishment and taking premises out of use are circumstances you have to report. The insurer can then limit the cover, set additional requirements or adjust the premium. If you do not report it, the insurer can rely on Articles 7:928 and 7:930 of the Dutch Civil Code when a loss occurs and the payment is reduced or refused.
Read more
Within Bedrijfsschadeverzekering
- Bedrijfsschadeverzekeringthe main page
- Business interruption insurance through a.s.r.
- Avero achmea zakelijk bedrijfsschadeverzekering overig
- Compare business interruption insurance
- Nationale nederlanden zakelijk bedrijfsschadeverzekering
- De goudse zakelijk bedrijfsschadeverzekering
- Zzp bedrijfsschadeverzekering
Similar pages
- Business interruption insurance through a.s.r.
- Compare business interruption insurance
- Business interruption insurance
- Business interruption for self-employed professionals
- Business interruption insurance through Nationale-Nederlanden
- Business interruption insurance for agricultural businesses through Avéro Achmea
- Business interruption insurance through De Goudse
- Business interruption insurance through Allianz