• By Raymond Momanyi

Business Interruption Insurance in Kenya | Protect Business Income

Learn how Business Interruption Insurance in Kenya protects lost gross profit, continuing expenses and additional operating costs after an insured event disrupts your business.

What Would Happen If Your Business Closed Tomorrow?

A fire can destroy stock, machinery and business premises within minutes. A flood can make a shop, restaurant, warehouse or office inaccessible. Damaged equipment may take months to replace, especially where parts must be imported.

Property insurance may help repair the building and replace insured assets, but physical repairs are only part of the financial problem.

While the premises are being restored:

• Customers may stop buying
• Production may cease
• Sales may decline
• Employees may still require salaries
• Rent may remain payable
• Loan repayments may continue
• Competitors may gain your customers
• Temporary premises may be needed
• The business may incur additional operating expenses

This is where Business Interruption Insurance becomes important.

Business Interruption Insurance is designed to protect eligible income and continuing expenses when an insured incident disrupts normal business operations. It is also commonly called Loss of Profits Insurance, Business Income Insurance or Consequential Loss Insurance.

International commercial insurers describe the cover as protection for loss of income and continuing costs after operations are interrupted by an insured event, such as fire damage at a business location.

Property insurance rebuilds the physical business. Business Interruption Insurance helps the business survive financially while rebuilding takes place.

What Is Business Interruption Insurance?

Business Interruption Insurance protects a business against defined financial losses resulting from an interruption or interference with operations.

In many traditional policies, the interruption must result from physical loss or damage caused by a peril insured under the accompanying property policy.

For example:

1. A fire damages a bakery.
2. The fire is covered under the bakery’s property policy.
3. Production stops while the premises and ovens are repaired.
4. The business loses sales but continues paying certain expenses.
5. Business Interruption Insurance may respond to the eligible financial loss during the recovery period.

Kenyan insurers recognise business interruption as a class of commercial general insurance, while industry material identifies it as one of the protections businesses can use against financial disruption.

The exact protection depends entirely on:

• The insured causes of damage
• The property insured
• The financial basis selected
• The indemnity period
• The sum insured
• Policy extensions
• Exclusions
• Claims documentation

Business owners should therefore avoid assuming that every closure or decline in sales is automatically covered.

Why Property Insurance Alone May Not Be Enough

Consider a furniture manufacturer whose workshop is damaged by fire.

The property policy may pay for eligible damage to:

• The building
• Machinery
• Raw materials
• Finished stock
• Office equipment

However, replacing specialised machinery may take six months.

During that period, the company may still face:

• Rent
• Salaries for essential employees
• Security expenses
• Loan repayments
• Accounting and administrative costs
• Reduced revenue
• Temporary outsourcing expenses

Without Business Interruption Insurance, the owner may have to finance those expenses from savings, borrowing or shareholder contributions.

A business can therefore have its physical assets adequately insured yet still fail because it cannot survive the recovery period.

What Does Business Interruption Insurance Cover?

The benefits differ between insurers, but a properly structured policy may cover the following areas.

1. Loss of Gross Profit

The policy may compensate the business for the reduction in insured gross profit caused by the interruption.

This is not necessarily the same as:

• Gross sales
• Gross turnover
• Accounting gross profit
• Net profit
• Cash in the bank

Insurance policies normally define gross profit using a specific formula.

Depending on the wording, insured gross profit may include:

• Net profit
• Insured standing charges
• Continuing fixed expenses

The definition must be agreed using the company’s financial records and policy wording.

International business-interruption guidance recommends using historical earnings and realistic projections when estimating future income and the required level of protection.

2. Continuing Business Expenses

Some expenses continue even when sales stop.

These may include eligible:

• Rent
• Salaries and wages
• Loan interest
• Professional fees
• Security expenses
• Insurance premiums
• Software subscriptions
• Certain utility standing charges
• Licences and statutory costs

The policy does not necessarily pay every business expense.

The business must identify which expenses should remain insured as standing charges and which costs would stop automatically when operations cease.

3. Increased Cost of Working

The business may incur additional expenses to reduce the interruption and continue serving customers.

This may include:

• Renting temporary premises
• Hiring temporary machinery
• Outsourcing production
• Paying overtime
• Using faster but more expensive transport
• Leasing equipment
• Moving stock
• Setting up temporary communication systems
• Advertising a temporary location

These expenses may be covered when they are reasonable, necessary and incurred to avoid or reduce an insured loss, subject to the policy formula and limit.

4. Additional Increased Cost of Working

Ordinary increased-cost protection may be limited by the amount of financial loss avoided.

A business may therefore request Additional Increased Cost of Working, sometimes abbreviated as AICOW.

This extension can provide a separate limit for necessary expenses that help protect:

• Customer relationships
• Brand reputation
• Market share
• Long-term contracts
• Operational continuity

The exact wording differs between insurers. It should not be assumed to be included automatically.

5. Loss of Rent Receivable

A commercial property owner may lose rental income when insured damage makes a building unusable.

A suitable Business Interruption or Loss of Rent policy may protect eligible rent receivable during the reinstatement period.

The landlord should consider:

• Total annual rental income
• Service-charge income
• Rent-free periods
• Time needed to rebuild
• Tenant relocation
• Lease-renewal risks
• Professional and approval delays

6. Claims Preparation Costs

A business-interruption claim can require accountants, valuers and other professionals to calculate the loss.

An extension may cover reasonable professional fees incurred in preparing and presenting the claim.

This can be particularly useful where the business has:

• Several branches
• Seasonal income
• Complex production processes
• Multiple revenue streams
• Rapid growth
• Incomplete operating capacity after reopening

Check whether claims-preparation costs are included and the applicable limit.

Which Events Can Trigger Business Interruption Cover?

Traditional Business Interruption Insurance normally operates alongside a material-damage policy.

A claim may be triggered when insured physical damage is caused by a covered peril, such as:

• Fire
• Explosion
• Lightning
• Flood
• Storm
• Earthquake
• Impact damage
• Malicious damage
• Burst pipes
• Machinery breakdown, where appropriately insured
• Other specifically listed perils

The underlying peril must generally be insured under the property section.

For example, where flood is excluded from the property policy, lost income caused by flood may also be excluded from the connected Business Interruption policy.

This relationship is often called the material-damage proviso.

The business-interruption section usually cannot be broader than the physical-damage cover supporting it unless a special extension clearly says otherwise.

Does Business Interruption Insurance Cover Every Closure?

No.

A business may close without suffering an insured physical loss.

Examples include:

• Lack of customers
• Poor management
• Cash-flow problems
• Ordinary equipment wear
• Employee resignation
• Planned renovations
• Seasonal decline
• Supplier price increases
• Loss of a major client without insured damage
• Government action unrelated to covered property damage

Such situations are not ordinarily covered under traditional Business Interruption Insurance.

Coverage can sometimes be extended to specific non-damage or indirect events, but only where clearly stated in the policy.

Physical Damage Is Usually Important

Traditional policies commonly require physical damage to insured property before the financial-loss section can respond.

There are specialist policies that address non-damage interruption, but those must be expressly arranged.

The distinction became especially important during the COVID-19 pandemic, when businesses discovered that policy wording, disease extensions, physical-damage requirements and exclusions could produce very different outcomes. CIC noted that business-interruption policies could provide relevant protection in some circumstances, but whether a particular loss is covered depends on the specific contract.

Never assume that a pandemic, government closure, power failure or supplier disruption is covered unless the policy expressly provides that protection.

Important Business Interruption Extensions

1. Suppliers’ Extension

Your premises may remain undamaged, but a major supplier may suffer an insured event that stops your operations.

For example:

• A manufacturer’s only packaging supplier suffers a fire.
• A restaurant’s central food distributor loses its warehouse.
• A construction business cannot obtain specialised imported materials.
• A retailer’s main supplier stops deliveries after insured property damage.

A suppliers’ extension may cover eligible interruption losses resulting from insured damage at specified suppliers’ premises.

Confirm:

• Whether suppliers must be named
• Geographic limits
• The percentage or monetary sublimit
• Which perils apply
• Whether overseas suppliers are included
• Whether indirect suppliers are covered

2. Customers’ Extension

A business may depend heavily on one or two large customers.

If an insured event damages a major customer’s premises and the customer stops purchasing, the insured business may lose revenue even though its own premises are unaffected.

A customers’ extension may protect eligible losses arising from insured damage at specified customers’ locations.

Businesses should identify customer concentration before arranging the policy.

3. Prevention or Denial of Access

Authorities may prevent access to business premises because nearby property has been damaged.

Examples may include:

• A fire in an adjoining building
• A dangerous structure near the premises
• A nearby explosion
• Emergency road closure
• Evacuation caused by insured property damage

A denial-of-access extension may respond without physical damage to the insured’s own premises, subject to strict distance, cause and time requirements.

4. Public Utilities Extension

Businesses rely on:

• Electricity
• Water
• Gas
• Telecommunications
• Internet services

An interruption caused by insured damage at a utility provider’s premises may affect operations.

A public-utilities extension may provide protection subject to:

• A waiting period
• Geographic limits
• Specific utility providers
• Damage requirements
• Maximum indemnity period
• Monetary sublimits

Ordinary load shedding, rationing, planned maintenance or unpaid utility bills may not qualify.

5. Machinery Breakdown Business Interruption

A factory, bakery, laundry, cold-storage business or workshop may depend on one critical machine.

Ordinary property insurance may not cover internal mechanical or electrical breakdown.

The business may need:

• Machinery Breakdown Insurance for physical damage
• Machinery Breakdown Loss of Profits Insurance for the resulting interruption

Relevant machinery may include:

• Boilers
• Generators
• Compressors
• Refrigeration systems
• Production lines
• Printing equipment
• Industrial ovens
• Packaging machinery

6. Infectious Disease Extension

Some policies may offer limited cover for interruption caused by specified infectious or contagious diseases.

The extension may require:

• Occurrence at the premises
• Notification to authorities
• Closure by a competent authority
• A named disease
• A specified geographic radius
• A defined sublimit
• A short indemnity period

The presence of a disease extension does not mean every epidemic or pandemic is covered.

7. Cyber Business Interruption

A cyberattack may stop a business without causing conventional physical damage.

Traditional Business Interruption Insurance may not respond.

Cyber Insurance can be structured to address losses arising from:

• Ransomware
• Network shutdown
• Data breach
• System failure
• Digital-service interruption
• Dependent technology providers

Britam’s current cyber product is designed for businesses and identifies ransomware, network-security breaches and data loss among the digital threats it addresses.

Cyber Business Interruption should be reviewed separately from property-based Business Interruption Insurance.

What Is the Indemnity Period?

The indemnity period is the maximum period during which the policy can compensate the insured financial loss following an insured event.

Common options may include:

• 6 months
• 12 months
• 18 months
• 24 months
• 36 months

The appropriate period depends on how long the business may take to recover.

The period should allow time for:

• Investigation of the loss
• Debris removal
• Building design
• Regulatory approvals
• Tendering
• Reconstruction
• Importation of machinery
• Installation and testing
• Restocking
• Recruitment
• Restoring sales
• Winning back customers

Commercial insurance guidance explains that interruption policies pay for a defined recovery or indemnity period rather than indefinitely.

Why 12 Months May Not Be Enough

Many businesses choose a 12-month period because it appears standard or affordable.

However, twelve months can pass quickly where:

• Machinery must be imported
• Building approval is delayed
• Construction materials are unavailable
• The premises are leased and relocation is required
• Specialist contractors are needed
• Customers have moved to competitors
• Production must be tested before reopening
• The business has seasonal sales cycles

A hotel damaged immediately before its busiest season may need more than one year to rebuild and recover bookings.

A manufacturer may complete repairs within ten months but require another year to restore contracts and turnover.

The indemnity period should reflect full commercial recovery—not only physical reconstruction.

What Is the Business Interruption Sum Insured?

The sum insured represents the financial amount placed at risk under the policy.

It may be based on:

• Gross profit
• Gross revenue
• Gross earnings
• Rent receivable
• Fees
• Payroll
• Standing charges
• Increased cost of working

The selected basis depends on the type of business and insurer’s wording.

Gross Profit Basis

This method is commonly used by businesses with variable costs linked to sales.

An insurance definition of gross profit may broadly reflect:

Net profit + insured standing charges

or

Turnover minus specified uninsured working expenses

The wording must be checked carefully because an accountant’s definition may differ from the insurer’s definition.

Gross Revenue Basis

This basis may be suitable for businesses whose expenses do not reduce significantly when income stops.

It can be relevant to:

• Professional practices
• Medical facilities
• Schools
• Service businesses
• Property owners
• Certain non-profit organisations

Weekly Revenue Basis

Some smaller businesses may insure an agreed weekly amount for a specified number of weeks.

This can be easier to administer but may offer less flexibility than a detailed gross-profit policy.

How to Calculate the Correct Sum Insured

The sum insured should reflect projected financial performance—not only the previous year’s figures.

Consider:

• Current turnover
• Expected growth
• Inflation
• New contracts
• New branches
• Price changes
• Currency fluctuations
• Seasonal peaks
• Indemnity period
• Continuing expenses
• Cost savings during closure

Example

Suppose a business expects annual insured gross profit of:

KSh 12 million

If it selects a 12-month indemnity period, it may begin with a projected amount of approximately KSh 12 million, subject to the policy formula and insurer requirements.

If it chooses a 24-month indemnity period, the amount may need to reflect two years of projected gross profit rather than one.

Growth and inflation must also be considered.

This is a simplified illustration. A qualified accountant or insurance adviser should calculate the figure using the actual policy definition.

What Is Underinsurance in Business Interruption?

Underinsurance occurs when the declared financial value is lower than the amount actually exposed.

For example, a business may declare KSh 10 million of insured gross profit when the correct projected amount is KSh 20 million.

Depending on the policy wording, the insurer may apply an average condition, reducing the claim proportionately.

The business may therefore recover only part of its eligible loss.

Underinsurance commonly arises when a company:

• Uses outdated accounts
• Ignores growth
• Selects too short an indemnity period
• Omits standing charges
• Uses accounting gross profit incorrectly
• Fails to include a new branch
• Does not allow for inflation
• Understates seasonal turnover

The policy should be reviewed at least annually and whenever the business changes materially.

Worked Business Interruption Example

Consider a Nairobi restaurant with the following position:

• Annual turnover: KSh 30 million
• Insured gross profit: KSh 15 million
• Selected indemnity period: 12 months
• Fire forces closure for four months
• Sales fall significantly
• Certain variable expenses are saved
• Rent, essential salaries and loan costs continue
• The restaurant rents temporary kitchen space

The claim calculation may assess:

1. The reduction in turnover caused by the fire
2. The insured rate of gross profit
3. Continuing insured expenses
4. Savings achieved during closure
5. Reasonable increased costs that reduced the loss
6. Policy excess or waiting period
7. Adequacy of the sum insured
8. Applicable extensions and exclusions

The insurer will not simply multiply four months by the annual turnover.

The business must demonstrate the financial loss using accounting records and the policy formula.

Documents Needed for a Business Interruption Claim

Claims can require substantial financial evidence.

A business should maintain:

• Audited financial statements
• Management accounts
• Sales records
• Tax returns
• Bank statements
• Payroll records
• Purchase records
• Stock records
• Customer contracts
• Supplier contracts
• Budgets and forecasts
• Branch performance reports
• Evidence of seasonal patterns
• Repair and replacement timelines
• Temporary-premises expenses
• Evidence of cost savings

The insurer may appoint:

• A loss adjuster
• A forensic accountant
• An engineer
• A surveyor
• Other specialist professionals

Poor records can make it difficult to prove how much income would have been earned if the interruption had not occurred.

How Is a Business Interruption Claim Calculated?

The calculation depends on the policy, but it may broadly involve:

Step 1: Establishing the insured event

The insurer confirms that physical loss or damage occurred from a covered peril.

Step 2: Establishing the interruption

The business shows how the insured damage affected operations.

Step 3: Estimating expected performance

Historical results, trends, budgets, contracts and market conditions may be reviewed to estimate what the business would probably have earned.

Step 4: Measuring actual performance

The insurer examines the turnover or income earned during the interruption.

Step 5: Calculating the reduction

The difference between expected and actual performance is assessed.

Step 6: Applying the insured financial formula

The gross-profit rate or other agreed basis is applied.

Step 7: Accounting for increased costs and savings

Eligible additional expenses may be added, while costs saved during closure may be deducted.

Step 8: Applying policy limits

The insurer considers:

• Sum insured
• Indemnity period
• Sublimits
• Average
• Waiting periods
• Excesses
• Exclusions

The result must reflect the actual insured financial loss rather than providing the business with a better financial position than it would have had without the incident.

Common Business Interruption Exclusions

Depending on the policy, exclusions may include:

• Interruption without insured property damage
• Uninsured physical perils
• Poor business performance unrelated to the incident
• Loss of market not directly resulting from insured damage
• Deliberate acts
• Fraud
• War
• Nuclear risks
• Cyber events under a traditional property policy
• Disease unless specifically extended
• Government closure without an insured trigger
• Utility failure without the relevant extension
• Ordinary machinery breakdown
• Wear and tear
• Delays caused by lack of funds
• Failure to mitigate the loss
• Fines and penalties
• Uninsured contractual penalties

The exact exclusions must be obtained from the selected insurer.

Does Business Interruption Cover Floods?

It may, but only where flood is an insured peril under the underlying property section and the Business Interruption policy follows that cover.

A business in a flood-prone area should confirm:

• Whether flood is included
• The applicable excess
• Drainage or risk-improvement requirements
• Stock-storage conditions
• Basement exclusions
• Waiting periods
• Limits for denial of access
• Utility interruption provisions

Do not rely on the broad term “fire and allied perils” without checking whether flood is listed.

Does It Cover Political Violence and Terrorism?

Not automatically.

Political violence, terrorism, riots and related risks may require a separate extension.

The business should confirm whether the extension covers:

• Physical property damage
• Resulting business interruption
• Denial of access
• Looting
• Malicious damage
• Specified locations

Buying political-violence protection for physical assets without including the resulting interruption may leave a major gap.

Does It Cover Power Failure?

Ordinary power failure may not be covered.

Protection may be available where:

• Insured physical damage occurs at the utility provider
• A public-utilities extension applies
• The failure exceeds the waiting period
• The affected provider and location fall within the policy terms

A machinery or electronic-equipment policy may also be relevant where power fluctuations damage insured equipment.

Businesses that rely heavily on electricity should combine insurance with:

• Generators
• Solar backup
• Uninterruptible power supplies
• Surge protection
• Preventive maintenance
• Continuity planning

Does It Cover Supplier Failure?

Ordinary financial failure or poor performance by a supplier is unlikely to be covered.

A suppliers’ extension may respond where a named or qualifying supplier suffers insured physical damage that interrupts your operations.

The business should identify:

• Single-source suppliers
• Overseas suppliers
• Specialised raw materials
• Long replacement lead times
• Alternative suppliers
• Maximum dependency values

Does It Cover Closure by Authorities?

Only under appropriate policy wording.

A prevention-of-access or public-authority extension may respond where authorities restrict access because of insured damage at or near the premises.

A general government directive, regulatory suspension or closure caused by non-compliance will not necessarily qualify.

Which Businesses Should Consider Business Interruption Insurance?

The cover can be valuable to almost every business that depends on continuing operations.

Manufacturers

Production stoppage can affect customer contracts, wages and loan repayments.

Restaurants and Hotels

A kitchen fire or flood can stop trading while rent, salaries and booking obligations continue.

Retailers and Supermarkets

Damage to premises can eliminate daily sales and cause customers to move elsewhere.

Schools and Colleges

Physical damage may require temporary classrooms, alternative facilities and continued staff expenses.

Hospitals and Clinics

Medical equipment, specialised premises and patient obligations can make interruptions costly.

Warehouses and Distributors

Damage can interrupt stock movement and supply contracts.

Professional Firms

An office fire can affect access to records, systems and client services.

Property Owners

Damage to rental premises can reduce rent receivable.

Logistics Businesses

Damage to terminals, warehouses or key equipment can interrupt distribution.

Online Businesses

Traditional property interruption may cover physical events, while separate cyber protection may be needed for network interruptions.

How Much Does Business Interruption Insurance Cost in Kenya?

There is no universal premium.

Pricing may depend on:

• Type of business
• Location
• Construction of premises
• Fire exposure
• Flood exposure
• Financial sum insured
• Indemnity period
• Claims history
• Risk-management controls
• Dependency on key equipment
• Supplier concentration
• Customer concentration
• Selected extensions
• Underlying property cover
• Policy excess or time deductible

A manufacturer using flammable materials will normally present a different risk from an office-based consultancy.

Similarly, a business selecting a 24-month indemnity period and broad supplier extensions may pay more than one purchasing basic 12-month cover.

A current quotation requires financial and operational information specific to the business.

Information Required for a Quotation

A business may be asked to provide:

• Company registration documents
• KRA PIN
• Nature of business
• Physical locations
• Annual turnover
• Insured gross profit
• Net profit
• Standing charges
• Latest financial statements
• Management accounts
• Business forecasts
• Required indemnity period
• Property values
• Fire-protection details
• Claims history
• Key machinery
• Major suppliers
• Major customers
• Utility dependencies
• Risk-management arrangements
• Existing policy schedules

Accurate information is essential.

How to Select the Right Indemnity Period

Ask how long it would take to:

1. Investigate the damage.
2. Clear debris.
3. Obtain permits.
4. Design and rebuild the premises.
5. Import replacement equipment.
6. Install and test machinery.
7. Restock.
8. Recruit or recall employees.
9. Restore customer confidence.
10. Recover normal turnover.

For many businesses, 18, 24 or 36 months may be more realistic than a basic 12-month option.

The right period depends on the specific recovery timeline and affordability.

How to Reduce Business Interruption Risk

Insurance should be supported by risk management.

Maintain a Business Continuity Plan

Document how the business will continue after a serious incident.

Back Up Important Data

Use secure off-site and cloud backups.

Identify Alternative Premises

Know where operations could move temporarily.

Develop Alternative Suppliers

Avoid depending entirely on one supplier.

Protect Critical Equipment

Maintain equipment and keep important spare parts.

Improve Fire Protection

Consider:

• Extinguishers
• Hydrants
• Sprinklers
• Smoke detection
• Fire alarms
• Staff training
• Electrical inspections

Maintain Financial Records

Reliable records make claim calculation easier.

Review Insurance Annually

Update:

• Turnover
• Gross profit
• Locations
• Machinery
• Suppliers
• Customers
• Indemnity periods
• Extensions

Test the Continuity Plan

A written plan is only useful when staff understand it and it works in practice.

Common Mistakes Businesses Make

Insuring Property Without Insuring Income

Replacing assets alone may not keep the company financially alive.

Selecting a Short Indemnity Period

Physical repairs may finish before turnover returns to normal.

Using the Wrong Gross-Profit Figure

Accounting definitions and insurance definitions may differ.

Ignoring Business Growth

An outdated sum insured can create underinsurance.

Forgetting Supplier Dependencies

The business may stop even when its own premises are undamaged.

Ignoring Cyber Interruption

Traditional property policies may not address system shutdowns.

Failing to Insure All Locations

A branch, warehouse or production site omitted from the policy may create a gap.

Poor Record Keeping

The business must prove its financial loss.

Assuming Every Closure Is Covered

The interruption must fall within the policy’s insured triggers.

Delaying Notification

Insurers should be notified promptly after an incident.

How to Compare Business Interruption Quotations

Ensure every insurer receives the same:

• Gross-profit calculation
• Turnover figures
• Indemnity period
• Property locations
• Insured perils
• Financial projections
• Extension requirements

Then compare:

• Premium
• Definition of gross profit
• Sum insured
• Indemnity period
• Waiting period
• Increased Cost of Working
• Additional Increased Cost of Working
• Suppliers and customers
• Public utilities
• Denial of access
• Claims-preparation costs
• Infectious-disease terms
• Cyber exclusions
• Political-violence extensions
• Average condition
• Policy excesses
• Claims requirements

A cheaper quotation may have:

• A shorter indemnity period
• Lower financial limits
• Restricted suppliers’ protection
• More exclusions
• Larger time deductibles

Always compare like for like.

How Imana Helps Businesses Arrange Business Interruption Insurance

Imana Insurance Agency Kenya Ltd helps SMEs, corporate organisations, property owners and professional firms assess interruption exposures and compare quotations from suitable licensed insurers.

The process can include:

1. Reviewing the business and property risks.
2. Identifying critical income streams.
3. Examining continuing expenses.
4. Selecting a realistic indemnity period.
5. Reviewing supplier, customer and utility dependencies.
6. Preparing comparable quotation information.
7. Comparing premiums, limits and exclusions.
8. Coordinating policy issuance.
9. Supporting policy changes and renewal.
10. Guiding the business during a claim.

Imana can also help combine Business Interruption Insurance with:

• Fire and allied perils
• Burglary
• Machinery Breakdown
• Electronic Equipment Insurance
• Cyber Insurance
• Public Liability
• Goods in Transit
• Commercial Motor
• WIBA
• Fidelity Guarantee
• Money Insurance
• Contractors All Risks

Kenya’s Insurance Regulatory Authority regulates and supervises insurers and insurance intermediaries, and businesses should verify that the parties involved are appropriately licensed. (Insurance Regulatory Authority)

Business Insurance in Westlands, Nairobi and Across Kenya

Imana Insurance Agency Kenya Ltd
4th Floor, Krishna Centre
Woodvale Grove, Westlands
Nairobi, Kenya

Imana serves businesses around:

• Westlands
• Parklands
• Riverside
• Lavington
• Kitisuru
• Gigiri
• Runda
• Muthaiga
• Nairobi CBD
• Industrial Area
• Other parts of Kenya through digital channels

Website: www.imana.co.ke
Call or WhatsApp: +254 796 209 402

Frequently Asked Questions

What is Business Interruption Insurance?

It is insurance designed to protect eligible income and continuing business expenses when operations are disrupted by a covered event.

Is it the same as fire insurance?

No. Fire insurance protects insured physical property. Business Interruption Insurance protects defined financial losses arising from the interruption caused by insured physical damage.

Is it also called Loss of Profits Insurance?

Yes. Business Interruption, Loss of Profits and Consequential Loss are commonly used to describe related forms of protection, although policy wording may differ.

Does it pay all lost sales?

Not automatically. Claims are calculated according to the insured financial basis, expected performance, actual results, savings, additional expenses and policy limits.

Does it cover salaries?

Eligible wages or salaries may be included where they form part of the insured standing charges or are otherwise provided for by the policy.

Does it cover rent?

Continuing rent payable by the business may be insured. Property owners may separately insure rent receivable.

Does it cover cyberattacks?

Traditional property-based cover may exclude cyber incidents. Separate Cyber Business Interruption Insurance may be required.

Does it cover power outages?

Only where the appropriate utility extension applies and the outage meets the policy conditions.

Does it cover floods?

It may cover the resulting interruption where flood is insured under the underlying property policy and not excluded.

What indemnity period should a business choose?

The period should reflect how long it could take to repair property, replace equipment and restore normal turnover. Twelve months may be insufficient for businesses with complex recovery needs.

Can a small business buy Business Interruption Insurance?

Yes. SMEs can arrange it independently or as part of a combined commercial insurance package, subject to insurer requirements.

What records are needed during a claim?

Financial statements, sales records, tax returns, payroll records, budgets, bank statements, invoices and evidence of additional expenses may be required.

Can Imana compare Business Interruption quotations?

Yes. Imana can help prepare the financial information, identify extensions and compare quotations from suitable insurers.

The Bottom Line

A business can replace damaged equipment and still collapse because customers, revenue and cash flow do not return quickly enough.

Business Interruption Insurance helps protect the financial engine behind the physical assets.

Before buying, establish:

• What events can stop your operations
• How much income could be lost
• Which expenses would continue
• How long recovery may take
• Which suppliers and customers are critical
• Whether cyber and utility risks need separate protection
• Whether the sum insured is sufficient

Do not insure only the building, stock and equipment. Insure the income that allows the business to employ people, pay its obligations and keep operating.

Imana Insurance Agency Kenya Ltd
Website: www.imana.co.ke
Call or WhatsApp: +254 796 209 402

Compare quotations. Understand the interruption risks. Choose suitable protection. Let Imana handle the rest.

Business Interruption Insurance premiums, insured events, financial definitions, indemnity periods, sublimits, extensions and exclusions vary between insurers. This article provides general information and does not replace a current quotation, policy schedule or full policy wording.