Business Interruption

What is Business Interruption Insurance?

If your business suffered an unexpected disruption, such as a fire, flood or storm, or a major supplier closes because of one of these events, how long would it take to get it up and running again? And how much would you lose along the way?

Business interruption insurance can help make sure your business keeps running smoothly after an unexpected event, by covering the turnover that is lost – so you can recover and rebuild.

Who should consider it?

For most business owners, there are ongoing expenses that you need to pay even if you’re not generating any revenue – like staff wages, supplier invoices, rent or loan repayments.

Business interruption insurance can get you through a temporary crisis by protecting your cashflow – so you can pay these expenses, and help ensure the future of your business.

What can it cover?

Business insurance packs can offer general protection for a business, which may include cover against:

  • Property damage
  • Business interruption
  • Theft
  • Money
  • Glass
  • Public and Products Liability
  • Transit
  • Electronic equipment breakdown
  • Machinery breakdown
  • General property
  • Tax audit
  • Employee dishonesty
“Insurance can help your business get back on its feet if things go wrong. You can insure against disasters and for business disruption to cover your losses during the recovery period.”
Department of Innovation, industry and science, 2018

Did you know?

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It’s estimated that natural disasters cost Australia $11 billion on average each year (Actuaries Institute, The cost and funding of natural disasters in Australia – current position paper draft for discussion, 2016)
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The top two risks to businesses around the world are extreme weather events and natural disasters (Fortune, ‘These are the biggest risks for businesses in 2018, According to the World Economic Forum,’ 2018)
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While most companies insure their building and contents against disasters like fire, theft and storms, many neglect to insure for the interruption to their business caused by these events (Australian Federation of Travel Agents “Do you have business interruption insurance?’ 2018