When your business suffers an unforeseen interruption, the financial loss can be devastating. Business Interruption Insurance helps to minimise the financial impact to your business when an interruption to your normal operations occurs.
Cover for all possible eventualities
Picture this. A small bike rental shop at the beach is flooded by a king tide during the peak summer season. The premises are water damaged and the road to the shop is badly affected and will take weeks to repair.
You unsuccessfully lobby the council to provide compensation while the road is fixed, and you are unable to trade.
With Business Interruption Insurance you could be able to seek funds to cover the potential loss of income while the road is being fixed, funds for a temporary structure to operate out of while your shop is being repaired for flood damage and, of course, funds to repair the damage itself.
What is Business Interruption Insurance?
Business Interruption Insurance is designed primarily to cover losses in conjunction with a material damage policy. It is 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.
Business Interruption Insurance protects your business income from specified loss or damage. This could be direct, for example, damage to your insured premises, or indirect – perhaps a power failure or loss of some other utility, or damage to roads or railways that prevent your customers from getting to your business.
What does Business Interruption Insurance cover?
Lost income if an insured event occurs and your business isn’t able to operate as usual after a sudden loss or damage to your premises or equipment. Expenses incurred to keep your business running if something has happened that you can claim for. Costs involved in quantifying your claim if it takes some time to work out how much it will cost.
The wording of your Business Interruption Insurance policy is of the utmost importance. As with any insurance policy, you need to clearly understand what cover you require at the time that the cover is obtained, not at the time of the loss.
Do I need Business Interruption Insurance?
Business Interruption insurance is one of the most misunderstood insurance policies and is often overlooked by business owners, who believe they don’t need it.
Having the right business income coverage in place means your business can survive if an unforeseen event strikes. You retain customers and can trade while your assets are replaced or repaired, and you have peace of mind knowing your business can continue to meet its obligations.
You’re more likely to get support from financial partners, as they know their investment is protected, your profits are preserved, and you can meet the financial returns expected by stakeholders.
Finally, you get expert advice from your insurance broker as well as funding in the preparation of your claim.
How can we help?
At Wayne Grayson & Associates, we believe an informed insurance decision is the right one. Whether you’re after a business or personal insurance, our expert brokers will ensure your insurance is the right fit for you.
We understand Business Interruption Insurance and, most crucially, the exclusions under the policy conditions, and can provide the right level of cover for you and your business.
Contact one of our Auckland-based insurance brokers for advice on the best solution to suit you or your organisation.