Article by Christian Becker in Versicherungspraxis 5/2011
Business interruptions in form of production downtimes can endanger the existence of the affected companies. Among others, continued salary payments despite a production downtime can drive a company, which cannot employ its personnel profitably, to the brink of insolvency.
Many companies affected by a business interruption finance the monthly payable salaries through credit institutions. So far, it was disputed whether companies insured against business interruptions can demand the reimbursement of labour costs if the company does not pay its salaries itself but had it pre-financed. With its decision of 21st April 2010 (File Number: IV ZR 308/07) the Federal Court of Justice decided in favour of the insured. A pre-financing of salaries by third parties is sufficient for a reimbursement of labour costs.
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