Business Interruption Insurance is designed to protect businesses from the loss of income that may occur after a catastrophic event. This type of coverage is crucial for helping a business recover from a temporary closure or slowdown by covering ongoing expenses and lost profits.
For more information, feel free to contact Warren directly at warren@broadrisk.com.au or call him on 0422 131 401.
What is Typically Covered:
- Lost Income: Compensation for the revenue your business would have earned during the period it is out of operation due to a covered loss.
- Operating Expenses: Coverage for fixed costs that continue even when business operations are temporarily halted, such as rent and utilities.
- Relocation Costs: If your business needs to move to a temporary location while the primary premises are being repaired, these expenses may be covered.
- Employee Wages: Ensures that you can pay your employees and retain staff while your business is not operational.
- Loan Payments: Coverage for any business loan payments that are due while your business is not generating its normal income.
- Taxes: Provides for the payment of taxes that come due while your business is interrupted.
What is Not Typically Covered:
- Closure Due to Pandemic: Many policies exclude losses due to pandemics or infectious diseases unless specifically endorsed.
- Undocumented Income: Income that cannot be verified through financial records is typically not covered.
- Partial Closures: Some policies may not cover losses unless the business is completely shut down.
- Utility Failure: If the interruption is due to a failure of utility service outside of your property, it may not be covered unless specifically endorsed.
- Flood or Earthquake Damage: These events often require separate policies for coverage.
- Interruptions Due to Strikes or Labor Disputes: These are typically excluded from standard coverage.