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5 things you need to know about Business Interruption or Loss of Profits Insurance

We've summarised the key 5 things you need to know about Business Interruption or Loss of Profits Insurance to help inform you when deciding on your coverage.

1. It covers loss of income - should your business be unable to trade due to a property loss such as a fire or storm damage. When you do reopen you are likely going to have to rebuild your client base.

2. You can choose how long to keep the insurance cover for - starting at 12 months, we usually recommend most companies protect themselves for two years.

3. The Business Interruption component of a claim can easily be more than the cost of repairing the physical property damage. We've seen too many businesses struggle once their property has been repaired due to not having insured their loss of income.

4. It is usually sold as part of a business pack or property insurance policy - it's an option, so make sure you discuss it with your accountant and your broker, so we can help make sure you make an informed decision.

5. Business Interruption insurance is one part of a business continuity plan. Insurance will help provide a financial backstop but a solid business continuity plan will significantly reduce the time it takes to get you operating profitably again.

Contact us and we will walk you through what all this means for you and help every step of the way. 
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Penny Collins, Capital Mutual Insurance Brokers, ABN 14064465309, AFSL 232987

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