Too often people in business insure their business premises, contents and stock against the material damage risks of fire, explosion and other perils, without giving thought to business interruption insurance and the other problems that could arise.
When a business experiences a major loss it can take months or even years to get your business back on track.
Business interruption provides the revenue a business would have normally generated. Could your business survive with zero income for a month, several months or even a year?
|Production is disrupted.|
|Income falls drastically.|
|Redundancy and other payments may have to be made to employees who lose their jobs.|
|Delays in rebuilding and replacement of plant can drain capital.|
|Lost orders and customers may never be recouped.|
|Recruiting and training new staff can delay recovery.|
|Loss of Gross Profit|
|Bills and Utilities|
Our Austbrokers Comsure Insurance Advisers understand the risks and exposures that could impact your business. We work with you to develop a business interruption model that is best suited to your needs.
Leave the hard work up to us. We can help you work out your business interruption figures to avoid any underinsurance. We help tailor a cover to suit your needs.
Yes. All insurance offered by Austbrokers Comsure can be paid by the month through premium funders. If you chose to use the premium funder’s service, your monthly installments will be tax-deductible.
When your business suffers an interruption to trading, the indemnity period is the maximum time period you can claim for.
However, you must take into account that the indemnity period represents not just a period of time that it takes for your business property to be restored. It also reflects the time it takes for your business to be operating at the same revenue prior to the loss.
This cover allows your business to pay increased costs to maintain the business or service during the time of loss. These costs might include employing additional staff, hiring in equipment or even temporary relocation costs.
Also known as the “Average” or Co-Insurance” Clause, Underinsurance is the result of nominating a value for an asset which is too low to actually replace it in the event it is lost or damaged.
Certain cover sections (Fire, Business Interruption – Income, and Electronic Equipment) contain the Underinsurance clause. It is important to review the level of cover you have declared, as if the amount you have declared is too low, the insurer can apply a formula which limits their settlement to you for that loss. This can occur if you have declared less than 80% of the actual value of the risk/asset.
Many businesses unknowingly under-insure as they apply heavy depreciation to their assets or simply forget to include certain assets into their calculations.