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Do You Have Appropriate Business Interruption Cover

  • by The Quotesonline Team

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Business Interruption Cover

According to the Insurance Council of Australia over 50% of Australian businesses that suffer a physical loss and do not have business interruption cover will not resume their normal business operations. And yet only 30% of SME Businesses have Business Interruption cover as part of their insurance portfolio.

Business interruption insurance, also known as “loss of profits insurance” or “consequential loss insurance”, complements insurance on material assets such as buildings, plant and stock. It is designed to provide protection against loss consequent upon interruption of the turnover to a business as a result of damage to these assets by fire and other contingencies insured under a material damage policy, such as Fire and Extraneous Perils or Industrial Special Risks.

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