Are you risking your business and livelihood operating without Business Interruption insurance?

Usually, businesses will have a property insurance policy in place to cover themselves. If your business were to be affected by fire, burglary, floods or malicious damage, your business can become interrupted and your profitability may be affected. Not only is insurance for property and equipment loss important but your ability to meet your financial commitments is equally important.

Depending on the loss that your business suffers, it could be months until you are able to open your doors and start trading again.

Business Interruption Insurance is designed to replace your income stream while you wait for your business to get up and running again. It can pay staff wages, loan repayments, and even help to fund relocating your business to a temporary premise, and then pay for advertising fees to let everyone know you are back in business.

The policy can also pay the accountancy costs you incur preparing documentation needed to support your claim. We can help take care of the hard work of dealing with your insurance company to make sure you have the funds you need when you need them, be it drip fed or paid in a lump sum allowing you to get on with the job of rebuilding your business.

Even if you have property insurance, most businesses will suffer a significant interruption to their cash flow afterwards. A Business Interruption Insurance policy means rather than worrying about keeping your head above water, you will be able to run your business with a peace of mind.

For example, the December 2010 and January 2011 floods in Queensland saw floods on a scale that was unprecedented in Queensland. This event saw three-quarters of the state declared a disaster zone, affecting thousands of businesses. One in five businesses in Queensland had to close as a result of the floods due to full or partial water inundation. The loss of property including plant and equipment, stock, buildings and motor vehicles to those businesses directly affected by the floods was on average $589,000 (via CCIQ statistics). Unfortunately, many businesses were not covered by Business Interruption Insurance or did not have sufficient coverage for flood damage which negated claims for their Business Interruption Insurance.

The Insurance Council of Australia has noted that decades of insurance claim records show that many businesses didn’t have Business Interruption Insurance in place.  Unfortunately, these businesses were forced to close indefinitely due to the significant financial strain on their business.

Insurance Business Australia, has mentioned that the lack of uptake in business interruption cover should concern both the insurance industry and its clients.

Defining your Business Interruption needs and sourcing the right cover for your business can be a confusing task. We understand the complexities involved and can advise you on what’s best for your business. We will look at your current cover and tailor a Business Interruption insurance policy to suit your business needs. Contact our brokers today and see how we can help you. Call us on 1800 809 132 or email hello@ewib.com.au

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