Business Interruption – What is it?

Business interruption insurance (also known as business income insurance) is a type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.

Business interruption is one section on a policy that many business owners neglect to take and it should be one of the first you take! Many of you will have income protection to protect your income yet choose not to take Business Interruption to protect the business income that may employ people, a business that needs its income to service and retain its clients. Cash flow kills businesses that suffer a total or partial loss that DO NOT have this cover. Under insurance also applies to this section so you must make sure your declared sums insured e.g. gross profits or turnover how ever your policy is rated are accurate and take into consideration any growth of the business during the policy period. The key to any good insurance policy is purchasing your business insurance through a broker!

These are the reasons why:

• Brokers are professionals that provide you with advice and outline your risk exposures – things you don’t see but wish you did in the event of a claim
• Brokers have access to superior policy wordings with broad cover that you cannot get through the direct market
• Brokers act for YOU! The insurer acts for them as do agents for insurers
• Brokers will handle your claim and make sure you are paid according to the policy wording and cover you purchased
• A good Broker will contact you to review your policies each year to make sure your cover and information is accurate as non-disclosure can result in a declined claim
• Your Broker is a trusted adviser no different to your accountant, lawyer, doctor or Bookkeeper

Your insurance policy is protecting the most valuable assets you have worked so hard for all of your life, such as your home and business, cars and property. Why would you risk purchasing an inferior policy only to fight to have your claims paid? Know the cost of insurance, pay for a decent policy through a Broker and sleep well knowing you have someone by your side every step of the way representing you against the giant insurers.