Norwest NSW
Business Interruption Insurance
Most business owners think about fixing the damage. Fewer think about the weeks or months of lost income while it's being fixed.
Business interruption insurance replaces the profit you would have made, and covers ongoing costs, when an insured event like a fire, storm or break-in forces you to close or slow down.
It works alongside your property policy. If you can't claim for the damage, you generally can't claim for the lost income either.
What it can cover
Lost gross profit
The profit you would have earned if the insured event had not stopped trading.
Ongoing fixed costs like rent and wages
Costs that keep running while the doors are closed or trading is reduced.
Extra costs to keep trading from a temporary location
Additional expenses to stay open or relocate while repairs are underway.
Damage to a supplier or customer's premises
Loss caused by damage elsewhere, when the right extension is included.
Restricted access by authorities
Loss when authorities restrict access to your site, if that extension applies.
Things people get wrong
The indemnity period is too short
Rebuilding can take far longer than 12 months. Choose a period that reflects reality.
The sum insured is too low
It should reflect your gross profit, not just last year's takings.
Assuming every event is covered
Cover depends on the cause. Pandemics and certain events are often excluded.
Case study
An example
A fire starts in the kitchen of a restaurant next door and the whole strip is shut for five weeks. The restaurant isn't damaged, but it can't trade. If the policy includes the right extension, the business can claim lost profit and keep paying staff while it's closed. Without that extension, the owner has no income and full costs.
Illustrative example only. Cover depends on your policy wording.
Contact us
To get this right, we'll ask about:
We're based at Suite 2.02, 2-8 Brookhollow Ave, Norwest NSW. Call 02 8660 2305 or email admin@idealbrokers.com.au.
Ideal Insurance Brokers, Norwest NSW 2153. Ideal Brokers Pty Ltd (CAR No. 001262504 | ABN 65 623 205 952) is a Corporate Authorised Representative of Metrix Connect Pty Ltd ACN 635 286 136 as the trustee for the Metrix Connect Hybrid Trust ABN 55 742 327 931 | AFSL No. 525491. This page contains general information only and does not take into account your objectives, financial situation or needs. Read the Product Disclosure Statement before buying.
Business interruption insurance FAQs
Not automatically. It's usually a separate section you need to add.
For the indemnity period you choose, such as 12, 18 or 24 months.
Generally not. Most policies exclude it. We'll tell you exactly what yours says.
It's based on your gross profit plus costs. Your accountant's figures help. We'll go through it together.