To be fully insured, it is necessary to insure every expense of the business that is not truly variable in direct proportion to sales.

No two businesses are the same and, as such, any advice on an expense category must, of necessity, be a generalisation and should be treated as such.

While not the only aspect to consider, the amount of the expense should be looked at. If the cost to insure an expense is too high, you should not insure that expense.

Advertising is a variable expense and therefore need not be insured.

There is no need to insure Directors Fees under a Business Interruption policy.

It is prudent to insure interest and other financing costs.

If an expense need not be insured and it is, then the worst that can happen is that any reduction in the expense during the period of disruption will be deducted as a saving. The Insured will have paid a premium on something that cannot be claimed.

An expense that continues after a disruption and is not insured, is an expense the business has to bear out of the reduced Turnover. The cost is much greater than any premium that was payable.