Business Interruption Insurance, Business Interruption Coverage

Business Interruption Insurance

Get back in business faster

Lack of protection for business interruption is a key cause of underinsurance across Australia. If your business was seriously damaged by fire, how long would it take you to become profitable again? Would general cover for material damage be enough to get the wheels back in motion? What if you had to stop operating altogether – could you repay your debts, and pay off your staff?

Research shows that 43% of businesses who sustain a major loss do not resume trading. Of those who do not have some form of insurance, 28% fail within 3 years and only 29% survive. Economic uncertainty and rising interest rates make business interruption insurance all the more crucial – if disaster strikes, debt funding becomes highly problematic, and surviving a prolonged period with lost revenue becomes impossible.

Business interruption ‘pays the bills’ to maintain your business:

• Profits: it restores profits you would have earned without interruption to your business's operations
• Debts & Expenses: it services your debt and meets payment of fixed expenses
• Production: it funds increased operation expenses to maintain production
• Employees: it meets payment of staff salaries and redundancy payments if employees need to be laid off.

Business interruption coverage: getting it right

Business interruption coverage should be carefully assessed and implemented. Your coverage depends on the precise policy wording and its interpretation – small differences can have a dramatic input on claim outcomes. Plus the nature of risks faced vary from industry to industry and from business to business. Not only do many business people struggle to understand it, so do many insurance advisors!

That’s why it’s wise to engage a risk professional who you know understands subtle differences in policy wordings and how they affect coverage for interrupted losses to your business, in your industry. Insurance House’s long-time risk experts have dealt with the most complex of commercial risks throughout their professional lives.

Nothing less than a commercial risk expert

Insurance House is one of the few amongst thousands of insurers and brokers in Australia who fully understand the complexities of business interruption insurance. Our specialised business risk services include:

• Conducting interruption surveys where interruption specialists and/or accountants consider your exposures and the length of time that your business may be interrupted in the event of a catastrophe
• Making accurate sum insured calculations and setting an suitable indemnity period
• Creating the appropriate balance of insurances so you are covered whenever a business interruption loss exceeds a property loss
• Reviewing your Risk Profile annually for optimum coverage and savings.

You're covered with IH Business Assist

What’s more, if you take out business interruption coverage with Insurance House you will automatically register for our free support service, IH Business Assist. This includes:

• Service guarantee including a dedicated Account Manager and Support Team
• Financial analysis services
• Formal review processes for a range of business risks
• A range of other support services including claims analysis and consulting, valuations, access to our online knowledge bank and subscription to our quarterly newsletter.