Lightning Strike & Business Interruption Cover

Whilst many activity providers will be out enjoying the warm weather, the met office have issued warnings regarding thunderstorms, lightening, and heavy rainfall whilst the heatwave continues.

Lightning strikes are thankfully rare but they can happen, and they are only one possible cause of damage – fire, storm and flood damage are more common and of course all of these can cause a building to be unavailable for use, with practical and financial implications for an activity provider.  Ensuring you have Business Interruption cover as part of your policy is important.

A previous AIM member needed assistance during a violent storm of heavy rain and very strong winds, lightning struck the gable end of one of the dormitory blocks on their site. This strike damaged the fire alarm at the building which stopped it from functioning. The storm rumbled on and by 4am a local milkman, on his rounds, discovered the building was on fire and alerted the emergency services. Unfortunately by this time, the building had suffered significant damage including a collapsed front roof and damaged undercroft plus smoke damage throughout and all services (water/electric) were destroyed.

The effect on future bookings could have been disastrous, a group was booked in for the following week so alternative accommodation had to be found and the local youth hostel kindly provided this for us. 

The need to have the correct plans in place to deal with an incident of this nature is paramount. The centre already had a critical incident plan which was adhered to at the time and since then we have continued to update this plan, and other processes on an annual basis”

This particular Member had Business Interruption cover, which was important for their survival as it covered loss of earnings while the new dormitory was being build and an entire term’s worth of business.  To lose this level of income would have been disastrous.  The outcome was a positive one for them but without this important cover the story could have been very different.

Are You Covered?

AIM offers Business Interruption cover to all members who take Property Damage cover.

Business Interruption covers loss of income (including rent where appropriate) and increased costs arising from damage to a member’s premises. Surveys indicate that most SME’s buy cover for their buildings and contents, whether with AIM or a conventional commercial insurer, but fewer opt for the protection of Business Interruption cover as well.

If you are interested in learning more about Business Interruption, and receiving a quotation, please contact our team and we will be happy to provide a quotation.