Why get business interruption insurance?
If a business is out of action for a length of time Business Interruption Insurance will cover expenses while your business recovers, relocates or restocks.
Normally part of a Business Insurance policy, it will kick in following a fire or other insured peril occurring at a business premises when some form of interruption to the business occurs.
What type of expenses does Business Interruption Insurance Cover?
This insurance will cover your business related expenses like rent, wages, relocation expenses, advertising and suppliers cost.
Why is it so important
According to LMI group who provide services to corporate and government for insured and uninsured losses
Typically following a fire or other insured peril occurring at a business premises some form of interruption to the business occurs. This disruption results in a reduction in Gross Profit.
- Some expenses are truly variable to sales. (purchases) = A use business on weekend
- Other Expenses which may or may not continue if the business does not trade. (rent, wages, electricity) =B
- Net Profit (loss) =C
- Insurable Gross Profit /Gross Income is =B + C
How do I arrange a business interruption quote?
Quotesonline uses Insure 247 to process your quote request, they will send you a calculator from LMI, once completed they take it to a number of insurers and come back to you with the quotes.
Please note Quotesonline Insurance News is an information service provided by third parties Insure 247 Australia doesn’t warrants the accuracy of any information contained there in, readers should make their own enquiry’s before relying on information in the stories Terms of Service