What does business interruption insurance cover?

Business interruption insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt. Cover starts from when your trading is halted, not from the date of damage. You are paid during a period of restoration.

Business interruption insurance makes sure you have the necessary funds to:

• maintain your income stream while your doors are closed 
• pay for additional expenses, eg. temporary premises or additional costs to source products
• advertise to let customers know that you have moved to a new location or any other effects of the business interruption
• meet financial obligations to the bank, shareholders and staff
• organise and quantify your claim.

Why have business interruption insurance?

Having the right business interruption coverage in place means:

• your business can survive if an unforeseen event strikes
• you have peace of mind knowing your business can continue to meet its obligations
• you are likely to retain customers and can trade when the assets are replaced or repaired
• you get expert advice and funding in the preparation of your claim.