What is Business Interruption Insurance?


One of the most frightening things about running a business is the ‘great unknown’. How would your business survive an unexpected loss or an unforeseen closure? How would you pay for the repair or replacement of expensive assets without a steady flow of customers? Depending on the event that occurs, your business could be out of action for weeks, or even months.

Business interruption insurance is designed to help you get your business back on track again when disaster strikes.

A fire, flood, forced evacuation, or temporary closure due to neighbouring events can put your business at huge financial risk. An unexpected loss may cause emotional and financial stress for your employees, stop potential customers from entering your store, restrict and interrupt important business operations, prevent suppliers from delivering new stock, or push back significant meetings and key dates. The cost of the damage inflicted on your business might also make it difficult for you to cover manufacturing expenses, rent, supplier costs, wages and other unforeseen costs that will remain regardless of your loss.

Business interruption insurance helps take away some of that stress. When a disaster occurs, your broker will do all of the hard financial work for you and use their expert knowledge and experience to work with your insurer in solving your problems and making available to you the funds you need, when you need them.

A business interruption insurance policy can:

    • cover the cost of any income your business loses due to a temporary closure (based on your previous financial records, you may receive the same amount of revenue you would have earned had the disaster never occurred).
    • cover the cost of any ongoing expenses that will continue to pile up, even though your business activity is halted (e.g. rent, electricity, water, gas, supplier and manufacturing costs).
    • cover the cost of a temporary relocation if your business can not operate on your current premises.
    • help you pay for advertising when you are ready to go back into business and open your doors again.
    • provide peace of mind and allow you to focus all of your attention on the things that matter most.

From a simple, small business to a large, multi-site manufacturing company, Western Insurance Brokers can help you protect your business and give you the confidence you need to grow your customer base. Contact your insurance broker or Western Insurance Brokers today to get a business interruption insurance quote.