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Business insurance

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Business interruption insurance

When you suffer a business interruption, the financial loss can be more devastating than the physical loss. Business interruption insurance, also known as ‘business continuity' insurance; ensures that you minimise the financial impact on your business when an interruption to your normal operations occurs after a physical loss of business assets. 

It’s designed to help you carry on through the event and after the damage has been repaired. The cover funds your increased operational expenses and injects lost profits into your balance sheet.

 

What business interruption insurance covers

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 product
    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.

Benefits of business interruption insurance

Having the right business interruption insurance in place means:

  • your business survives if an unforeseen event strikes
  • you retain customers and can trade when the assets are replaced or repaired
  • you have peace of mind knowing your business can continue to meet its obligations
  • you’re more likely to get support from your financial partners, because they know their investment is protected
  • you get expert advice and funding in the preparation of your claim
  • your profits are preserved, and you can meet the financial returns expected by stakeholders.

 

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