Business interruption is the loss of income due to an unexpected event that forces a business to shut down temporarily, and it can have a significant impact on your company's bottom line.

According to a 2018 Allianz survey across 80 countries, business interruption tops the list of global risks, with almost 50% of respondents naming it as the number 1 risk.

Whether it’s the result of a fire, flood, storm, a machinery breakdown, or even a cyber incident, a business interruption policy can help make sure your business keeps running smoothly. It protects your cashflow during a temporary crisis, ultimately allowing you to reset, recover and rebuild.

Take for example a recent restaurant fire, which destroyed the kitchen area of the property. Whilst the property was covered, the 8 weeks that it took to rebuild the kitchen meant a lost income stream of $100,000. Fortunately, the restaurant had an adequate Business Interruption policy in place, meaning they could cover their fixed costs whilst the damage was repaired.

What Does It Cover?

Business interruption insurance can cover the loss of any sales you would have made while your business is out of action, plus any extra costs you incur to stay open.

More specifically, it can cover:

- Loss of sales profit following damage to property and additional costs and expenses incurred during a claim.
- Repair or replacement of property that's been damaged
- Temporary office setup in a temporary location
- Ongoing operating expenses, such as electricity, rent & staff wages
- Training costs for operators or replacement of machinery
- Closure of your business due to government-ordered street closures
- Damage to a neighbouring business which has a negative impact on your business operations.

Who Does It Cover?

Recommended for most business owners, especially for those in more complex industries, and those who operate in areas that are prone to severe weather events.