Business Interruption & Loss of Income Insurance

Protect your sports club’s income, cashflow and ongoing costs if an insured event forces closure

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Business Interruption Insurance for Sports Clubs

Sports clubs often focus on physical risks such as injuries, liability claims and equipment damage. However, one of the most serious threats to a club’s survival is the loss of income following an unexpected closure.

Business Interruption & Loss of Income Insurance is designed to protect sports clubs if an insured event - such as fire, flood, storm damage or major property loss - prevents normal operations. This cover helps replace lost revenue and supports ongoing expenses while your club recovers.

Insure24 arranges Business Interruption Insurance specifically tailored for sports clubs, including football clubs, rugby clubs, cricket clubs, gyms, swimming clubs and multi-sport facilities.

What Does Business Interruption Insurance Cover?

Loss of Income / Gross Revenue

Business Interruption Insurance can replace income lost while your club is unable to operate following an insured event that causes property damage.

  • Lost membership fees and subscriptions
  • Lost matchday or event revenue
  • Lost bar, café and hospitality income
  • Cancelled classes, sessions or bookings
  • Reduced turnover during phased reopening

Ongoing Fixed Costs

Even when your club is closed, many costs continue. Business Interruption Insurance can help cover these unavoidable expenses.

  • Staff wages and payroll contributions
  • Rent or mortgage payments
  • Utilities and service contracts
  • Loan and finance repayments
  • Insurance premiums and licences
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What Events Can Trigger Business Interruption Cover?

Insured Property Damage Events

  • Fire or smoke damage to club buildings
  • Flood or escape of water
  • Storm or impact damage
  • Theft or malicious damage
  • Structural damage requiring closure

Business interruption cover normally operates following insured property damage. The trigger event must be covered under your buildings or contents policy.

Access & Operational Restrictions

  • Loss of access to premises due to damage nearby
  • Utility failures following insured damage
  • Safety restrictions imposed after damage
  • Partial closures or reduced capacity

Extensions may be available for certain non-damage access restrictions, subject to insurer terms and conditions.

Indemnity Periods Explained

The indemnity period is the maximum length of time your business interruption policy will pay out. Choosing the right period is critical for sports clubs.

  • 3 months – suitable for very minor facilities
  • 6 months – small clubs with limited repairs
  • 12 months – common for most sports clubs
  • 24 months – larger clubs and complex rebuilds

Underestimating your indemnity period is one of the most common mistakes clubs make. Rebuilding, refitting and regaining membership levels often takes longer than expected.

Why Sports Clubs Often Need Longer Periods

  • Seasonal income cycles
  • Membership cancellations after closure
  • Delayed planning permission or contractors
  • Phased reopening and reduced capacity

FREQUENTLY ASKED QUESTIONS

+-

+- What is Business Interruption insurance?

Business Interruption Insurance helps replace lost income and covers ongoing costs if your sports club is unable to operate following insured property damage.

+- Is Business Interruption insurance compulsory?

No, but it is strongly recommended. Without it, many sports clubs struggle to survive prolonged closures.

+- Does it cover pandemics or government lockdowns?

Standard Business Interruption policies usually require physical property damage. Pandemic or lockdown cover is typically excluded unless specifically stated.

+- How is loss of income calculated?

Claims are usually based on historical turnover, adjusted for trends and future projections, subject to policy terms.

+- Can this be added to an existing sports club policy?

Yes. Business Interruption Insurance is typically added alongside buildings and contents cover.

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