It aims to replace certain financial losses sustained by the business during the period of the disruption when you may have reduced turnover. Cover can include losses following damage to your premises caused by incidents such as a fire, flooding or other physical damage. Some policies give extensions to include losses that you suffer because you are denied access to your premises. For example, a gas leak occurs nearby and the area is cordoned off. A small number of policies give cover in the event of an outbreak of certain notifiable diseases at your premises. For example, Legionella is found in your water system forcing you to temporarily close while the problem is investigated, and your premises are decontaminated. The amount of cover you need will depend on the amount of time you think it will take for your revenue or turnover to recover to the level immediately prior to the loss. This is called the indemnity period and it is very important to get it right. Most policies offer 12 months as standard, but this may not be sufficient so think about 18 months or even 24 months. The team at Garage Insurance Services can advise you here and help you avoid being underinsured.