A core corporate insurance compensating the turnover fall (loss of profit), fixed costs (rent, wages, interest), temporary-relocation cost and extra production cost during a stoppage when a site is damaged by fire, explosion or storm-flood. Combined with property insurance or taken out standalone.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A core corporate insurance compensating the turnover fall (loss of profit), fixed costs (rent, wages, interest), temporary-relocation cost and extra production cost during a stoppage when a site is damaged by fire, explosion or storm-flood. Combined with property insurance or taken out standalone.
| Loss of profit (GP) | Turnover fall − variable costs |
|---|---|
| Fixed costs | Rent, wages, interest |
| Temporary relocation | Hire of an alternative premises |
| Extra production cost | Outsourcing and transport extra cost |
| Indemnity period | 6 / 12 / 18 / 24 months option |
Large loss when factory operation stops.
Dependent on room turnover.
Supply chain on a warehouse fire.
Rent loss.
| Service interruption | Electricity/gas/water cut-off |
|---|---|
| Contingent BI | A key counterparty's accident |
| Wide-area damage | A regional wide-area disaster |
| Policy period | 1 year |
|---|---|
| Insurers | Chubb (specialist) · DB · Hyundai |
| Limit | Annual GP 100–500% or 12–24 months |
| Turnaround | 3–6 weeks |
| Channel | Individual consultation with our broker (010-5755-6465) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk patterns that come up often in running a business — a five-scenario self-check
If a fire stops factory operation, the lost turnover meanwhile can exceed the cost of repairing the broken equipment.
If a facility accident stops operation, loss accumulates until room/ancillary turnover recovers.
A fire at a logistics hub can spread beyond stored-asset loss into a whole supply-chain disruption.
If an accident at a rental building stops the letting, rent-income (rent loss) arises.
An accident at a neighbouring counterparty/supplier, not your own site, can also lead to a turnover fall.
The most often missed fact in business interruption insurance is that "the business-stoppage loss can exceed the property loss". When a fire breaks equipment, the cost of restoring it is handled by property insurance, but the loss of profit (GP) over the stopped period until restoration is complete, and the fixed costs that keep going meanwhile, are a separate loss. BI insurance covers exactly this stoppage-period loss. The key is the "indemnity period". Set at 6/12/18/24 months, it must match the realistic restoration period until the business recovers to normal, and setting it too short creates a gap where cover ends before recovery.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
Set the indemnity period to the realistic restoration period until the business recovers to normal after an accident. Setting it too short creates a gap where cover ends before recovery.
A turnover fall from economic fluctuation or market conditions is not covered. BI handles business-stoppage loss from a "property accident".
A turnover fall from an accident at a neighbouring counterparty/supplier, not your site, is handled not by base cover but by a Contingent BI endorsement. Review it where supply-chain dependence is high.
The questions decision-makers ask most when considering business interruption (BI) insurance
It compensates the loss of profit (gross profit) during a business stoppage from a property accident such as fire, the fixed costs that continue throughout, and the extra costs of resuming the business.
Property insurance handles the cost of restoring the damaged building/equipment. The profit lost during the stoppage until restoration is complete, and the fixed costs, are a separate loss that BI insurance covers.
It is set at 6/12/18/24 months and so on, matched to the realistic restoration period until the business recovers to normal level after an accident. Setting the restoration period too short creates a cover gap.
A turnover fall from an accident at a neighbouring counterparty/supplier rather than your own site is not base cover but is handled by a Contingent BI endorsement. Where supply-chain dependence is high, review it together.
No. A turnover fall from economic fluctuation or market conditions is excluded. BI insurance covers business-stoppage loss from a property accident.
The insurer assesses it on the sector, the turnover/profit structure, the fixed-cost scale, the indemnity period, the restoration difficulty of key processes and past incident history. The exact premium and acceptance are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
