Business Interruption Insurance
Business Interruption Insurance is designed for business owners and companies. The scope of the insurance — i.e., its coverage, compensation period, and insured amounts — varies depending on the size of the company and the nature of its operations.
The insurance covers financial losses incurred by the policyholder due to a decline in product sales or services caused by damage resulting from fire, indoor water leakage, or burglary.
Information regarding the insurance
What type of insurance is this?
Business Interruption Insurance covers financial losses your business may suffer due to fire, water leaking from pipes within the walls of the building, or burglaries.
What is covered? | What is not covered? |
|---|---|
| The insurance covers: | The insurance does not cover: |
Operation losses following a fire, water damage and burglary. | Operating losses due to strikes or lockouts. |
Additional costs incurred during stoppage such as rental payments or advertising costs. | Operating losses if stoppage is extended due to lack of capital or by order of the authorities. |
Any limitations on what the insurance covers?
Business interruption insurance is only available if fire, burglary, and water damage insurance is purchased as well.
Where is the insurance valid?
The insurance is valid in Iceland, for the location specified in the insurance policy unless otherwise agreed upon.
What responsibilities do I have?
You must report any damage as soon as possible and no later than one year from the date of the damage.
You must ensure that all the information in the insurance policy is accurate.
You must inform us of any changes in your address, telephone number, and email address.
You must follow all the precautions in the terms of the insurance policy, e.g. that doors, windows and other openings to the insured location are securely locked and keys are stored in such a way that unauthorized persons cannot access them.
When and how do I pay the premium?
The premium must be paid on the due date. When the insurance policy is issued or renewed an electronic claim is created in your online bank. You have the option to distribute the premium payments by:
Credit card payment, where the premium is charged monthly to a credit or debit card.
Direct payment, where your bank account is debited monthly.
Corporate distribution, where the premium can be paid in monthly payments.
When does the insurance start and when does it end?
The insurance policy takes effect when an offer is accepted and is renewed annually until it is canceled.
How do I cancel the insurance?
Individuals and companies with fewer than five full-time positions can cancel the insurance at any time and it will expire at the end of the following month after the cancellation is received. Other companies can cancel their insurance one month in advance before the end of the insurance period.
The cancellation must be in writing, for example with an electronic signature.