Business interruption insurance protects selected income and ongoing costs when a qualifying insured event disrupts trading. Property cover addresses damaged assets; interruption cover addresses the insured financial effect of downtime, subject to the Coversheet, wording, limits and indemnity period.
Business interruption insurance protects selected income and ongoing costs when a qualifying insured event disrupts trading. Property cover addresses damaged assets; interruption cover addresses the insured financial effect of downtime, subject to the Coversheet, wording, limits and indemnity period.
Business interruption insurance is business-income protection. After a covered trigger, it can compensate selected fixed expenses, operating profit and approved extra working costs during recovery. It neither covers every revenue loss nor replaces property insurance.
The Allianz Risk Barometer 2026 ranks cyber incidents first globally at 42%, artificial intelligence second at 32% and business interruption, including supply-chain disruption, third at 29%. These are risk-concern rankings; one insurance section does not necessarily cover all three.
A loss of revenue alone is not enough. Under the MiWay Business Insurance policy wording, selected cover generally requires a valid underlying claim under Buildings, Office Contents, Electronic and Specialised Equipment or Stock. Prevention of Access works differently. Check the actual trigger against the current wording and Coversheet.
Fixed expenses: Ongoing insured overheads affected by the drop in turnover.
Operating profit: Loss of operating profit when this option is selected.
Additional working expenses: Approved extra costs that keep the business operating and reduce turnover loss.
Prevention of access: An optional extension for qualifying nearby property damage that prevents or hinders access.
Specified suppliers: An optional extension for qualifying material damage at suppliers or subcontractors named on the Coversheet.
Fixed expenses are insured overheads affected by reduced turnover. Under MiWay’s wording, operating profit is earnings before tax, interest and depreciation and is covered only when selected. The turnover threshold, saved expenses, insured value and selected benefits determine compensation.
Additional working expenses are extra costs that keep the business trading and reduce the insured loss. MiWay requires approval before they are incurred. Keep quotes, invoices and evidence showing how the expense reduced the interruption.
Only when suitable contingent cover is selected. Miway’s option concerns material damage at a supplier or subcontractor named on the Coversheet. Do not assume ordinary delay, insolvency, poor performance or an unnamed supplier is covered.
Not under MiWay’s standard Business Interruption section, which excludes electronic programs, data, software and cyberattacks. Digitally dependent businesses should assess dedicated cyber insurance, cyber business-interruption protection and incident response.
Non-covered losses include normal operating losses, bad debts, weak demand and interruptions without the selected trigger. MiWay also excludes losses arising from vehicles, trailers, goods in transit, money and Business All Risk property under this section. Pandemics, utilities and government closures require policy-specific review.
The indemnity period is the maximum selected time for which an eligible claim can pay. Allow for rebuilding, approvals, equipment lead times, supplier recovery and the return of turnover. If the period ends too early, a continuing loss may be uninsured.
The insurer examines historical and forecast turnover, seasonality, trends, saved costs, fixed expenses, selected operating profit and approved extra expenses. Under MiWay’s wording, the insured value is the maximum payable and average may reduce an inadequately insured claim proportionately.
Fire at insured premises: A valid property claim closes a retailer; selected interruption benefits respond during the covered recovery period.
Supplier damage: A named supplier suffers insured-type material damage; the optional specified-supplier extension may respond.
Cyberattack: Systems are encrypted but no covered property claim exists; the MiWay Business Interruption section excludes cyber and data losses, so separate cyber cover must be checked.
Map dependencies: Identify critical premises, equipment, utilities, data, people, suppliers and logistics.
Set recovery priorities: Define minimum operations, recovery time objectives and decision owners.
Build alternatives: Pre-arrange remote work, temporary premises, backup suppliers, equipment and communications.
Protect systems: Use tested backups, access controls, patching, staff training and a cyber incident plan.
Keep evidence: Retain financial records, contracts, asset values, continuity plans and supplier details.
Test and update: Run exercises and review cover after growth, relocation, new systems or supply-chain changes.
Common mistakes include using outdated turnover, choosing a period based only on repair time, omitting key suppliers, assuming cyber is included, incurring extra costs without approval and keeping weak financial records.
Model a severe but plausible shutdown. Confirm the trigger, income basis, continuing costs, realistic recovery time and critical suppliers. Check the turnover threshold, insured value, indemnity period, extensions, excess, average clause and claim evidence. A documented calculation exposes underinsurance before a loss.
Protecting cash flow requires the right trigger, value, benefits and recovery period. Review the wording or compare Miway Business Interruption insurance. Cover remains subject to the Coversheet and policy wording.
