What is the difference between property insurance and business interruption insurance?

Property insurance covers the cost of repairing or replacing physical assets like buildings, contents, and equipment after an insured event. **Business interruption insurance UK** covers the financial losses (like lost profits and increased operating costs) that arise because your business cannot trade due to that physical damage, subject to underwriting criteria and terms.

Does business interruption insurance cover pandemics or infectious diseases?

Standard **business interruption insurance UK** policies typically require physical damage to your property to trigger cover. Losses due to pandemics or infectious diseases, without accompanying physical damage, are generally excluded. Some policies may offer limited extensions for specific notifiable diseases within a defined geographical area, but comprehensive pandemic cover is rare and usually requires specialist arrangements, subject to underwriting criteria and terms.

How long should my indemnity period be for business interruption insurance?

The indemnity period is the maximum time your policy may pay out for losses. It should be long enough to not only repair physical damage but also to fully restore your business to its pre-loss trading position. This can often take longer than expected, so many businesses opt for 24 or 36 months, rather than the minimum 12 months.

What is "under-insurance" in the context of business interruption?

Under-insurance occurs when the sum insured (the maximum payout) for your **business interruption insurance UK** is less than the actual gross profit or revenue your business would have generated during the indemnity period. If you are under-insured, insurers may apply an "average clause," reducing your claim payout proportionally to the level of under-insurance.

Can I get business interruption cover if I work from home?

Yes, even home-based businesses can suffer business interruption. If your home office is damaged by an insured peril (e.g., fire, flood), preventing you from working, **business interruption insurance UK** could provide cover for your lost income and any increased costs of working from a temporary location, subject to underwriting criteria and terms. It's important to ensure your home insurance policy allows for business use and to discuss your specific needs with a broker.

Business Interruption Insurance UK: How It Works and Why It Matters in 2026

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