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Business Interruption Insurance

Business Interruption coverage is the life raft your business depends on in the event of a loss.

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Cover at a glance
  • Business Interruption cover protects your business’ profits
  • Normally triggered by a material damage claim
  • Can be the difference between your business recovering from a loss or closing its doors for good

Policy Overview

Business Interruption coverage is the life raft your business depends on in the event of a loss. Cover is normally triggered after a material damage claim to your premises, after which the insurer will provide cover for your lost earnings until the business is back to running at pre-loss levels, up to the length of the Indemnity Period.

Many business owners underestimate the benefits of Business Interruption cover as it is not a tangible exposure, but failure to take out the correct Business Interruption coverage can be the difference between your business recovering from a loss or closing its doors for good.

The information provided on this page that may have been implied is General Advice only and does not take into consideration your specific needs, risk appetite or financial requirements. Please contact our office to discuss and review your needs and the appropriate financial product best suited to meet your requirements . Before purchasing any financial product, you should always read the Product Disclosure Statement to ensure the product is suitable for your needs.

Frequently Asked Questions

How is my premium calculated?
Your premium is calculated based on the risk profile of your business (see Property) and the insured amount, normally known as ‘Insurable Gross Profit’. This is calculated by taking your turnover and closing stock and deducting your expenses that don’t need to be insured, less your opening stock. We can assist with this calculation.
What is an Indemnity Period?
The Indemnity Period is the length of time you choose to be insured for. This can be 12 months, 24 months or longer. The Indemnity Period is one of the most important factors in Business Interruption as choosing an insufficient Indemnity Period can spell disaster for your business. We can assist in selecting the appropriate Indemnity Period for your business.
Is any interruption to my business covered?
No, as with all insurance policies there are exclusions, however the primary trigger for a Business Interruption claim is for material damage to have occurred that is covered by your material damage insurance policy (normally a Business Package or ISR policy). Policy wordings differ so please don't hesitate to speak with us regarding your specific circumstances
What is Insurable Gross Profit?
Importantly, this is not the same as accounting Gross Profit. Insurable Gross Profit is calculated by taking your total turnover plus closing Stock and Work in Progress, less your Opening Stock and Work In Progress less nominated Uninsured Working Expenses. The calculation reduces your total turnover to the point that you are left with your profit and standing charges to ensure your business is still able to meet it's financial committments after a major loss. The calculation can become quite complicated so please contact us to discuss your specific circumstances
What additional coverage is available?
Cover can be extended to cover material damage sufferred by suppliers and buyers if this impacts your turnover. Cover can also be obtained for interruption to public utilities and civil authorities as well
Why should I take out Business Interruption Insurance?
Every business has financial committments that need to be met. If your turnover reduces or ceases altogether due to a material damage claim not meeting these committments could spell disaster for your business. . Many businesses would not survive a prolonged shutdown, and Business Interruption cover is the life raft that keeps your business afloat in the event of a major loss

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