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 The information on this website is general advice only and does not take into account your personal circumstances, financial situation or needs. Please connect with an insurance broker to discuss your specific needs.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Penny Collins.