Did You Know? Business Interruption Insurance Policy Time Excess

In general terms and conditions, every Insurance Policy will have some portion amount of loss which becomes the responsibility of the Insured which is called as “excess”. Under Business Interruption policy, the excess is expressed in the time period stated as “Time Excess”, which means that the period beginning with the occurrence of the Insured damage and ending not later than the period specified in the schedule. You are not insured for any loss arising out of an interruption during this period.

The Time Excess is a part of your indemnity period, which is the period of time in which the benefits are payable under an insurance policy. It is also used to denote the time period for which indemnity or compensation is payable under a business interruption. Thus, if the loss for items covered under Business Interruption such as loss of gross profit and increase cost of working incurred during the time excess period, such costs will not be able to be paid under your Insurance policy.

Time Excess may vary depending on your policy term and condition, therefore we suggest you to review your insurance policy wording. If you have any further questions and/or concerns about the above aspect, please feel free to contact us at 021 – 2523110 and we would be pleased to assist you.