01 / The meaning
What it means.
Rent, certain salaries, equipment leases and service subscriptions may be examples, but whether a cost truly continues depends on the contract and circumstances. A cost described as fixed in management accounts may still be avoidable after a prolonged closure. Conversely, the business may choose to retain staff or equipment because losing them would make reopening more difficult.
Business interruption policies can address continuing expenses through an insured gross-profit calculation, specified expenses or another declared basis. Check the wording rather than inserting accounting gross profit without adjustment. Forecast which costs continue throughout the realistic recovery period and which reduce or stop. Keep lease commitments and payroll assumptions with the calculation, and distinguish ordinary continuing expenditure from extra costs incurred to limit the disruption.
02 / Put it in context
A practical example.
Hypothetical example: a gym closes after property damage but remains liable for rent and equipment leases. The owner maps those commitments across the expected repair period and checks their treatment in the business interruption calculation.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- List contractual costs that continue despite a trading interruption.
- Identify expenses that reduce, cease or can be renegotiated.
- Match the insurance calculation and indemnity period to those commitments.
04 / Start a useful conversation
A question for your broker.
Which continuing expenses are included, and how long would the business need to fund them?
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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