Business Interruption Insurance

More than 50% of small business owners haven't planned for business interruption

A business interruption policy is a form of insurance that offers cover should you be forced to close your business following a disruption. Business interruption (or income) protection is designed to put you and your business back into the same financial position you would have been in had the disruption not occurred. Business interruption insurance allows you to continue to meet your obligations such as paying bills, staff and other commitments even when your business is closed.

Business Interruption Insurance: do the "what if..." test

Ask yourself some simple questions and you get an idea of why business interruption insurance can be so important:

  • How long could your business survive if you were forced to suspend operations?
  • How would your life be impacted if you were unable to draw a salary from your business?
  • How would you pay staff wages for several weeks or months without cash flow?
  • Could you afford the running costs of your operation while your business is close?
  • If you are unable to trade, how long would it be before your customers moved to a competitor?

What if a fire in your café destroyed your kitchen and you had to close for 2 months while repairs were made. Could your business survive? A standard business insurance package policy could cover the cost to repair the kitchen, while business interruption insurance cover could reimburse you for any lost income while your doors were closed.

Many businesses that incur a major loss are unable to resume trading because they don't have business interruption insurance to make up for lost business income while their business is being restored. Some businesses may remain open for some time but under duress, they lose customers and sales due to their inability to provide the same service they had prior to the claim.

Think Cyber

If you're a business that uses technology for everything from e-commerce through to point of sale, cyber insurance is also worth considering. Cybercrime is growing at an increasing rate in Australia and there are aspects of cyber that are not covered by standard business interruption insurance.

Need more information? Happy to help.

Speak to one of our friendly team to discuss a tailored solution, call us on 1800 571 941 to speak to one of our business interruption insurance specialists.

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