01 / The meaning
What it means.
Many commercial arrangements require insured physical damage, while selected extensions can address defined dependencies or other circumstances. A shutdown, reduction in demand or inability to trade does not automatically qualify. Establish what happened, whose property or service was affected and which section could respond. Supplier disruption, utility failure and denial of access each require their own wording check.
The financial calculation can use policy-defined gross profit, revenue or another measure rather than the figure used in everyday accounts. Review continuing expenses, saved costs, seasonal patterns and realistic growth. The indemnity period should reflect the time needed to regain trading, not only repair a building. Additional expenditure may have conditions concerning necessity, approval and the loss it helps avoid.
02 / Put it in context
A practical example.
Hypothetical example: A fire damages a bakery’s production area and delays trading while equipment is replaced. The owner records lost sales, continuing expenses and temporary production costs. An insured property event may make interruption cover relevant, but the actual benefit depends on the wording and financial evidence.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify the required event and any dependency or access extension.
- Reconcile the declared financial measure with the policy definition.
- Check the indemnity period, waiting period and additional-expense conditions.
04 / Start a useful conversation
A question for your broker.
What event must happen before this policy addresses our interrupted trading?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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