The interpretation of business interruption clauses in South Africa : a constitutional analysis

Abstract

A business interruption (hereafter, BI) policy is a type of cover that is generally added on top of another policy, such as property insurance or any comprehensive insurance policy. However, depending on the intention of the parties, the cover may be a stand-alone policy tailored according to its own specifications. Generally, a BI may cover a variety of contingencies such as loss of income, losses resulting from civil authority, loss of profits, costs of actions taken to mitigate losses and reasonable of expenses of running a business enterprise. BI coverage may also be subdivided into a ‘contingent’ BI cover that specifically protects the policyholder from damages or interruption affecting a third party such as a supplier.