Protect your business if disaster strikes with Business Interruption Insurance tailored to your requirements
While no one expects a disaster to strike their nursery business, when it does, it’s vital to have Business Interruption Insurance in place, alongside your buildings and contents cover.
When business interruption protection is correctly arranged, you’ll be protected against loss of revenue and additional staff costs. Without it, the financial impact of a serious situation could cause your nursery to close for good.
Why this kind of cover is so important
The most common reason for needing this cover is when a property is damaged due by fire or flood. But business interruption insurance can have major benefits:
- When there is an outbreak of a notifiable disease
- When there is a failure of utilities
- When safeguarding incidents result in staff being suspended
It pays to have a plan
When an incident seriously damages your premises, you would ideally look to find alternative accommodation to avoid closure. This could include installing temporary structures such as Portacabins.
To help both you and your insurer in such a situation, we recommend putting together a business continuity plan, outlining what should happen in the event of a disaster or serious loss.
Our business continuity plan template will help with this, visit our helpful document page.
Loss of Revenue Sum Insured
To ensure your business interruption cover is adequate, the Loss of Revenue sum insured should be based on your projected turnover for the forthcoming period to ensure that your income is fully protected should a nursery setting have to close. This should take into account future growth including any planned increasing of fees and occupancy.
Your business Interruption insurance covers losses in turnover from the date an incident occurs right up to when your turnover returns to where it would have been had the loss not occurred.
The period providers usually offer is 12 months – however in our experience this is not usually enough time to recover your customers who will have had to arrange nursery facilities elsewhere, if your nursery is closed.
Nurseries should consider extending this period to 18 or 24 months or 36 months for larger settings.
Got it right!
Business Interruption at work
A major flood on Boxing Day 2015 left Creche-n-Co without premises for 9 months. As a large 60 place setting it was vital that the nursery continued to provide childcare to the college they are associated with, meaning closure was not an option and alternative accommodation was needed.
As part of the claim process, we helped Creche-n-Co move some children to other sites nearby and arrange for a Portacabin to be erected within the college grounds.
The 24 months Indemnity Period meant the loss of revenue was fully covered including the loss of income at Creche-n-Co’s other settings, which had restricted growth opportunities due to taking in children from the flooded site.
What our customers say
“Your knowledge, patience, understanding and the constant ‘hand holding’ enabled us to continue providing childcare on site, while also rebuilding and refurbishing our nursery premises after the devastating Boxing Day flood. We really felt we have been guided and looked after by friends.”
Lorraine Darlington, Director, Creche-n-Co Ltd
Your account handler
Good relationships are good for business. So at dot2dot we believe in really getting to know our customers. That’s why we provide you with a dedicated account handler, who’ll get to know you and your nursery on a one-to-one level
Get in touch
To find out more information and get a quotation that is unique to you and your business please get in touch by using the contact form below or speak to a member of our team on 01204 570390
Summary of policy details
At dot2dot tailoring cover for client’s individual requirements is very important and a member of our team is happy to guide you through this process. In the meantime, here is a summary of the standard cover provided which are adaptable.
Public and Products Liability
Standard Limit of Indemnity £5 million
Limit can be increased if required
Cover automatically includes Medical Treatment and Breach of Professional Duty at £5 million
Standard Limit of Indemnity £10 million
All Risks cover including Accidental Damage, Subsidence and Full Theft which is tailored to suit individual requirements.
All Risks cover for Loss of Revenue and/or Increased Cost of Working tailored to your individual needs.
Directors & Officers Liability
Limit of Indemnity £25,000
Increased limits available
Money and Assault
Included with various limits
Loss of Registration
Staff and children
Commercial Legal Expenses
Limit of Liability £100,000
For a copy of our full policy summary, please contact the dot2dot team.
The bear that cares
A closer look at business activities
Our experience has taught us that no two nurseries are the same. Whilst it’s easy to assume your insurer is aware of and covers you for the range of activities…
Request full policy details
With your policy, you will gain access to:
- AVIVA is the UK’s largest general insurer; ultimately providing additional strength and expertise to dot2dot
- AVIVA share our passion to work closely with nurseries and will ensure we continue to enhance our insurance cover and provide additional solutions and services
- AVIVA has won many awards for service and innovation and has developed leading technology specifically designed to improve claims management
- AVIVA has a strong reputation for working closely with their customers to actively defend appropriate claims – an approach that has identified them as a market leaders