Twelve-month indemnity periods for BI are rarely fit for purpose in hospitality

To mitigate issues of underinsurance and ensure coverage adequacy in the hospitality sector, extended indemnity periods should be introduced. Rebecca Webster, broker development lead at McLarens, suggests a minimum of two or three years to cover the timeframe often required for a full recovery,

Hospitality brokers are increasingly focused on ensuring their clients’ business interruption coverage is fit for purpose. One area around which consensus is building is indemnity periods. 

Although the perils that hospitality businesses face remain fairly constant, the time it takes to reinstate and return an impacted business to its pre-loss trading position is often under-estimated.

As a result, there has been a growing focus on BI indemnity periods. The basic indemnity period for BI tends to