THE UNDERLYING PRINCIPLE

THE UNDERLYING PRINCIPLE

The underlying principle behind Business Interruption insurance is to provide the policyholder with a sum of money that would allow them to continue to pay their ongoing business expenses. At the same time, it is there for the business owners to retain the same level of net profit (or loss) that the business would have generated had it not been for the loss, giving rise to the disruption. In other words, the policy has been designed to put the policyholder in the same financial position that they would have enjoyed, but for the loss.