Business Interruption Insurance
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Business Interruption Insurance?
Business Interruption Insurance is intended for employers and businesses. It is an add-on to contents insurance and compensates for business losses that may occur due to a reduction in the sale of goods or services following a loss that is covered under the contents insurance. If only fire insurance is in force, the business interruption insurance applies solely to interruption of operations caused by fire.
What Is Covered?
Operating loss due to fire, water damage, or burglary.
Loss or damage caused by additional costs incurred during the time a commercial housing or facilities keeping the property is out of service.
Verifiable and unavoidable costs the insured suffers if their commercial housing becomes unusable due to loss or damage covered by fire, burglary, or water damage property insurance.
What Is Not Covered?
Increased business loss or damage due to strikes, lock-out, engine failure, or because the restart of the operation is delayed due to improvements, enlargement, instructions issued by the authorities, or the like.
Increased business loss or damage due to strikes, lock-out, engine failure, or because the restart of the operation is delayed due to improvements, enlargement, instructions issued by the authorities, or the like.
Are There Any Restrictions or Precautionary Rules?
The insured is required to comply with Vörður's precautionary rules.
The insured is required to cooperate with the insurer on measures to prevent business losses or to reduce them.
The insured must ensure that the premises at the insured location are fully compliant with applicable laws and regulations at all times, as relevant.
The insured must comply with instructions or remarks from public regulatory authorities, such as the Building Authority and the Consumer Agency.
Doors and other entry points must be securely locked, and windows must be closed and latched when the storage area is unattended.
In unheated buildings, the water supply must be shut off, and water pipes along with connected appliances must be drained when there is a risk of freezing.
Inventory stored in basements must be placed on shelving or pallets, and there must also be a floor drain in the storage area.
Where Is The Insurance Valid?
The insurance is only valid on the location stated in the insurance policy certificate.
What are the insured's obligations?
To provide all necessary information, whether at renewal of the insurance or when making changes to it.
Report any damage at the earliest opportunity and no later than one year from the date of the incident.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When does insurance coverage begin and how does it end?
Insurance contracts are generally valid for 12 months from the date of acceptance of the offer and issuance of the insurance, and premiums are based on the annual premium. If the insurance is not terminated within that period, it is automatically extended.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.