01 / The meaning
What it means.
Business interruption and cyber policies may use hours or days after a defined event before certain losses can be considered. Some provisions exclude loss during that initial period; others use a qualifying-duration mechanism with a different calculation. Read the wording rather than assuming all waiting periods work like a monetary excess or that every short interruption is treated identically.
The starting point matters. The clock may relate to system failure, business interruption, discovery or another defined event, and there may be rules for repeated interruptions. Separate this period from the maximum indemnity period, which addresses how long insured losses can be measured. A business should assess whether it can fund the operational gap and keep contemporaneous records of the outage, restoration and resumption of trading.
02 / Put it in context
A practical example.
Hypothetical example: an online wholesaler suffers a payment-system outage. It records when the failure began and ended, checks the relevant time requirement and calculation method, and estimates its retained loss without assuming the insurer’s later assessment time is the waiting period.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify the event that starts the clock and how repeated outages are treated.
- Check whether the period is an excluded time excess or a qualifying threshold.
- Compare the retained gap and maximum benefit duration with realistic recovery needs.
04 / Start a useful conversation
A question for your broker.
How does this waiting period affect our loss calculation, and what evidence establishes when the relevant interruption started?
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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