Business Interruption Insurance: Is your Garage Adequately Protected?

Most independent garages insure their buildings and equipment, but fewer fully review their Business Interruption cover. This section is designed to protect your income if a major insured event, such as a fire, stops you trading, yet many policies only include a 12-month indemnity period, which is often not enough.

What is Business Interruption Insurance?

Business Interruption cover protects your business profits and ongoing expenses following an insured material damage claim. It helps cover costs such as wages, rent, and other financial commitments while your garage recovers.

Why it’s Important

• Recovery takes longer than expected – After a serious fire, it can take 6-8 months just to clear the site before rebuilding begins. A 12-month indemnity period may end before you are fully operational again.
• Getting back to normal takes time – Even once you reopen, trading levels may not immediately return to where they were before the loss. Business Interruption cover is designed to support you until the business reaches its previous level of turnover.
• Adequate sums insured matter – The limit of indemnity should include all ongoing expenses and projected business growth, not just current costs. This cover only applies following an insured material damage claim, so ensuring the limits and indemnity period are sufficient is essential.

Business Interruption is one of the most commonly under-insured areas. In many cases, increasing cover from a 12-month to a 24-month indemnity period, and reviewing the financial limits, makes only a negligible difference to premium but can provide significantly greater protection if the worst happens.

As part of our ongoing commitment to ensuring our members receive the best possible support, service and value, RMI Insurance Services was established as our wholly owned insurance brokerage, providing insurance solutions tailored specifically for the motor trade.

Our team understands the needs of independent garages and can help ensure your cover truly reflects your business.

For further information, or to discuss your arrangements, please email enquiries@rmiinsuranceservices.co.uk or call 01788 538303.