Field notes
In commercial insurance, a misread clause is an operational risk
· By Diane du Paty, CEO & co-founder · 1 min read
A water leak in business premises, an interrupted activity, and a standard business-interruption clause the owner had not measured: a waiting period, an indemnity calculated on margin. What the brokers who make a difference do.
In commercial insurance, a misread clause does not create frustration. It creates an operational risk.
A very classic case on the business side. A water leak in business premises. Partial interruption of activity, equipment moved, works to start quickly. The owner thinks they are covered. The policy does cover it, but with a limit that is often poorly anticipated: the distinction between property damage and business interruption.
The clause, and its translation
It is standard: “Business-interruption losses are indemnified after a waiting period and up to the insured gross margin.”
Legally, nothing unusual. Operationally, the impact is major. As a broker puts it to an owner: “For the first days of the stoppage, the insurer pays nothing. And after that, it does not cover your revenue, but your margin.”
In this file, the owner had trimmed their covers the year before to contain the premium, without measuring what the waiting period and the indemnity calculation actually meant.
Why it is critical in 2026
Budget trade-offs are more frequent on the business side, and the consequences are not only financial. They are organisational. The commercial-lines brokers who make a difference have one constant reflex:
- translate clauses into real operating scenarios;
- quantify the impacts before signature;
- document the decisions when the client makes a trade-off.
What to take from it
In commercial insurance, a well-drafted policy is not enough. It has to be operationally understood. That is where the broker’s role is most strategic.
