Why is a three-month BI period often too short for a business?

Because in three months you usually only manage to assess the loss, receive the claims decision and order the first works – not to restore the business. Even in a simple water damage scenario, drying, repairs and replacing equipment regularly take more than three months; lead times for production equipment are measured in 6-12 months and more.

When this answer applies to your situation

• The shortest period on offer has been put into the policy by default.
• The company is weighing up whether a shorter period is a justified saving.
• The premises are rented, and it seems that "we will move quickly".

What can change the answer

• The loss scenario: cosmetic repairs against a full restoration.
• The rental market: how quickly you can realistically find and fit out other suitable premises.
• Lead times for the specialised machinery and equipment.
• The effect of losing customers – turnover does not return on the day the doors reopen.

What to check in the policy or quote

• What period is in the quote and why exactly that one
• The price difference between 3/12/18/24 month periods (often surprisingly small)
• Whether the period starts on the day of the damage and how the end of the period is defined

The typical mistake

The period is chosen on the premium, not on the restoration schedule. The saving on the length of the period is small, but the risk is existential.

Example

A situation typical in practice (generalised example, not a specific client)

A typical situation: a pipe bursts above the server room in an office. Drying and repairs – 2 months, delivery of the specialised equipment – another 3. The three-month BI cover runs out exactly when the costs are still running.

Related content

• Commercial property and BI insurance

This is not individual insurance advice; actual cover always depends on the chosen insurer's wording and the special conditions of the policy.