Business and charity

Business interruption advise for leisure trusts

At this time of year, with weather warnings ranging from yellow to amber sweeping across much of the United Kingdom, Endsleigh would like to take this opportunity to remind leisure and cultural trusts about an important aspect of business interruption policies. An aspect that could be important when protecting your bottom line in the event of an interruption claim.

We've pulled together some advise to help you better understand the terms, restrictions and cover exclusions of a business interruption policy.

What is a material damage proviso?

This is a condition within the business interruption section of a commercial insurance policy that exists so that the insurer can attempt to minimise the period during which the affected business will be interrupted. A material damage proviso is a standard feature of a business interruption policy wording.

The proviso is a requirement that a policy is maintained for material damage that protects your interest in the property in question. In the event of a claim, liability to pay for the damage must then be accepted under the terms of that policy, but not for an excess. The purpose of this proviso is to ensure that in the event of damage, funds are available to repair or replace damaged assets, thus minimising the time it takes for a business to resume full trading. In turn this should then to help mitigate the size of the business interruption claim.

Download the whitepaper to find out more about business interruption for leisure and cultural trusts.

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