Protect your livelihood
Most small business owners like to prepare for unexpected events by insuring their physical assets, such as their premises, contents, stock, machinery and equipment. But have you thought about what would happen if you had to shut your doors for a few days, weeks or even months due to an insurable event, like fire, storm or flood?
Would your business survive? How would you continue to pay for things like rent, utilities, staff wages and other business expenses?
Business Interruption Insurance can help your business to keep running if the insured property is lost or damaged after a catastrophic event such as fire, storm or flood, by covering your ongoing costs so you can recover and rebuild.
Who should consider it?
For most business owners, there are ongoing expenses that you need to pay even if you’re not generating any revenue – like staff wages, supplier invoices, rent or loan repayments.
Disruption to your business may be caused by:
- Weather events like storm, wind, flood, water, etc.
- Fire damage
- Loss of manufacturing plant & machinery
- A disruption at the premises of a major supplier
- Theft of contents or stock
- Prevention of access to your premises
- The disruption of power or other utility networks
Business interruption insurance can get you through a temporary crisis by protecting your cashflow – so you can pay these expenses, and help ensure the future of your business.
What can it cover?
Business Interruption Insurance can cover the loss of any sales you would have made while your business is out of action – plus any extra costs you incur to stay open.
It may also include:
- Ongoing operating expenses, such as electricity and rent
- Relocation costs for moving to, and operating from, a temporary location
- Training costs for operators of replacement machinery
- Closure of your business premises due to government-ordered street closures or curfews
- Damage to a supplier’s premises which has a negative flow on effect for your business operations
There must also generally be material damage covered by a property policy for Business Interruption cover to apply. For instance, a fire at your premises is covered by your property policy, therefore Business Interruption is triggered.
Other exclusions may apply and you should review any quote received carefully and consider the policy wording for all policy terms, conditions, exclusions and limitations.
Talk to one of our Qualified Practicing Insurance Brokers on (07) 5482 7485 today about how to make sure you have a professional protecting your business.