Business Interruption Insurance

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Insurance Quotes for Business Interruption*

Business Interruption Insurance can provide important risk protection for businesses as without an operating business, income is not generated, while costs, such as rent and wages are still incurred.

While standard commercial property insurance covers the physical loss or damage to property, it does not cover the loss of income unless explicitly included.

In Australia business interruption insurance can sometimes also be referred to as:

  • Business Continuity Insurance
  • Business Revenue Insurance

Many business owners are UNSURE if they are COVERED PROPERLY.
We help them find affordable and SUITABLE INSURANCE so they can run their business with CONFIDENCE.*

Small business owners can access many BIG name insurers AND
industry specific underwriters here:*

Small business owners QUESTIONS regarding
Business Interruption Insurance ANSWERED:*

Loss of profit from business interruption can occur in two ways. A business’s sales go down or the cost of operating the business go up.

Typically when a business suffers a business interruption event that causes a loss a sales the impact on profit may be offset somewhat by a saving in costs. For example, a reduction in cost of goods sold.

On the flip side it may typically also incur increased cost of working. That is, “new extra” costs may be incurred. For example, relocation expenses, express freight, temporary labour or client/supplier communication expenses.

The objective of a business interruption policy is to cover the loss of sales, less the expenses not incurred, plus the increased cost of working.

There is typically little or no difference between Business Continuity Insurance and Business Interruption Insurance.

Business Interruption Insurance is referred to as Business Continuity Insurance by some business owners as the cover is intended to provide funds to a business that allows a business to continue trading when the usual source of funds ; usually sales ; are not being generated due a specified event.

Another reason why some business owners refer to Business Interruption Insurance as Business Continuity Insurance is that without this cover many businesses do no survive or continue to operate after a major incident.

Business Interruption Insurance is referred to as Business Revenue Insurance by some business owners; as in simple terms , they see it as a cover that protects the revenue of their business.

It’s important that business interruption insurance is continually monitored to ensure it reflects the real position of your business and that sufficient time is allowed for in your cover to:

  • remove debris
  • address environmental issues
  • make strategic decisions
  • obtain planning permits
  • tender the project
  • reconstruct or rebuild plus order
  • receive commission equipment
  • and win back new customers

Take care not to underestimate how long it could take for your business to fully recover.

A business that operates from their own premises and has complicated equipment will typically require a longer indemnity period than a business that operates from a rented space and has no complicated equipment to replace.

A minimum indemnity period for a business that operates from a rented space and has no complicated equipment to replace is 12 months while a business that operates from their own premises and has complicated equipment will typically require 24 months indemnity period.

The relatively small cost difference between a longer indemnity period and a shorter indemnity can normally be easily justified from a business perspective. When you compare the potential negative impact not being covered for a sufficient amount of time can have on your business – the worst case , the business NOT becoming viable again – any “savings”” on a shorter indemnity period are put in perspective.

Depending on the business size and activities the cost of business interruption insurance may vary from a few hundred dollars to thousands of dollars.

Business interruption insurance for small businesses is often purchased as part of business insurance package.

As a percentage of total business insurance package costs business interruption insurance may add anywhere from 10 to 30%+ to the premium.

As it’s difficult to generalise about business interruption insurance cost for different types and sizes of businesses it smart to ask for a business interruption insurance cost when reviewing your other insurance covers or by simply calling a SMART Business Insurance broker on 1300 542 573.

Please note; there is a lot more to suitable business interruption insurance than just low cost. It’s important that the cover you purchase can provide your business with sufficient resources and time to recover.

If you want to discuss if your organisation is adequately protected for business interruption, please call us on 1300 542 573 to talk to a Business Insurance Specialist or contact us online.

SMART business interruption cover can be a very important form of business revenue insurance that may help with business continuity when disaster strikes.

  • We act for you – not the insurance company
  • You’ll receive a competitive quote on a suitable policy
  • You receive responsive friendly service.
  • You’ll receive a competitive rate on a suitable policy year after year
  • You’ll have us in your court if you need to claim
  • Monthly payment options
  • We’ll do the leg work for you!

Want guidance on Business Interruption Insurance coverage for your small business?
Get in touch. Here to help you.*

Need more CERTAINTY regarding your business insurance cover?
Have questions or want GUIDANCE?
Get in touch. Here to help you.*

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Small business owners DESERVE to get insurance cover at an
affordable price – and KNOW what they are covered for.*

We are business insurance brokers

What does this mean to you ?
What that means is that we are YOUR representative, and our first responsibility is to YOU, unlike an insurance agent who represents the insurance company.

And in the event of a claim, we fight for YOU, which may mean a faster and more successful claim.^

^Important : We have no power to authorise claims. However, our experience and assistance can help you when you have a claim.

SMART BUSINESS INSURANE BROKERS

REAL LIFE STORIES of small business owners who were UNCERTAIN about their business insurance coverage NOW operating with CONVICTION.*

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· We may act for you – not the insurance company
· We may obtain multiple quotes for you on suitable policies from leading insurance companies and underwriters
· You receive responsive friendly service.
· You’ll receive a competitive rate on a suitable policy year after year
· You’ll have us in your court if you need to claim
· Monthly payment options
· We’ll do the leg work for you!

Find out more.