Business Interruption Insurance

I’m always on the hunt for relevant info and I loved this - one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster.

Business interruption insurance is designed to put the business back in the same financial position as if the loss had not taken place. The cover starts from the date of the loss and extends to when the turnover levels are back to its pre-loss level. The net profit and ongoing expenses are important considerations for your insurance program. Without such coverage, your business may not be able to survive in the event of a serious loss.

What can your business be covered for?

Business interruption insurance provides coverage for:

• Ongoing expenses like payroll, financing and other fixed costs
• Revenue earning operations, supply chain and manufacturing dependencies
• Disruption caused by service providers including power, telecommunications, water

How long will the policy pay for the interruptions to your business?

This is known as the ‘indemnity period’ and needs to be discussed in depth with your insurance adviser. The indemnity period should represent the maximum amount of time it will take to get the turnover of the business back to normal after a worst case scenario incident. Some of the factors your adviser will consider include:

• Regaining customers and market share
• Debris removal
• Tender procedures

Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article here and share your thoughts with me afterwards: call on (07) 3243 0000 or email me at mfw@kingandcompany.com.au.

Thanks,

Mark