Is Business Interruption Insurance Necessary?

Retail Insurance

There’s no guarantee that you will be able to trade every day. Just because you can’t earn any income doesn’t mean the bills stop. There is still rent to pay, staff wages to cover, stock to purchase and bank interest. Business interruption insurance means your business won’t suffer financially due to an insured event. Quite often the event has nothing to do with your business. Freak weather such as a storm or flood, a major fire or crime next door can see a business closed for days, weeks or, in the case of rebuilding, months.

What does business interruption insurance cover?

Depending on the event that has occurred and your type of business, here is a list of possible items that insurance may cover:

  • moving costs if you need new premises
  • loss of income while premises are repaired or rebuilt
  • prolonged electricity or gas outage
  • one of your suppliers unable to provide goods
  • potentially pay wages to keep your staff
  • advertising costs to let your customers know you have relocated
  • prevention of access to your premises
  • cover any profit you would expect to earn if you had been trading

See how one business survived a major fire in their workshop thanks to their business interruption insurance.

Other Business/Office Options

Business interruption insurance is one option you have as part of your business/office insurance. Other parts of the insurance cover include:

  • Fire
  • Theft
  • Accidental damage
  • Water damage
  • Money
  • Glass breakage
  • Electronic portable equipment
  • Machinery Breakdown/Fusion
  • Management Liability
  • Employee Fidelity
  • Tax Audit
  • Goods in Transit

It’s hard for many business owners to imagine the worst case scenario but if the unthinkable happens, you need cover to ensure your business can make it through the bad times. Many businesses don’t have business interruption insurance because they didn’t know the risk even existed.  

Speak to a broker who can explain all the potential risks involved with your business and how you can mitigate those risks with the right business interruption insurance options. Our consultants have the necessary experience in handling restaurant and cafe insurance so call us on (08) 9367 7399, email us on or call into any one of our branches.

Category: Retail Insurance