This is a complementary policy to Fire and it cannot be issued in isolation (i.e. without the corresponding Fire Policy) and that is why a clause known as Material Damage Warranty is printed on the business interruption Policy.  It implies that a claim cannot hold on a business interruption policy unless and until liability has been admitted and paid under a similar fire policy.

The purpose of a business interruption policy is to provide compensation for the financial Losses suffered in consequence of the interruption stoppage in the business of the insured resulting from the material damage under fire policy.

A standard Business Interruption Policy Covers the following 3 main items: –

  • Gross Profit
  • Wages
  • Auditor’s Fees

Gross Profit:  This refers to the financial loss which the insured is bound to suffer as a consequence of interruption on his business. It is made up of the net profit to which shall be added the fixed or standing charges e.g. NEPA Bill, Water Rate, and Tenement Rate or otherwise represented as Turnover less variable Charges.

Wages: In the event of interruption on a business enterprise there are some Employees referred to as Key employees whose allowances and salaries must continue to be paid at least for a certain period of time, say 6 months or more. It is this class of employee’s wages that this item intends to cover.

Auditor’s Fees: The percentage used on gross Profit is used.

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About Us

Anchor Insurance Company Limited was registered and licensed by the National Insurance Commission (NAICOM) in October 1989 as a general business (non-life) insurance outfit and started business in November of the same year.


To be the most innovative and preferred provider of General Business Insurance Services in Nigeria.