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  • Writer's pictureAmanda Bird

Financing 101: Overview of Business Interruption Insurance

With the prevalence of global warming and an increasing number of natural disasters occurring since May of 2015, businesses must be prepared for the worst weather conditions. These affected state-wide transportation and access and caused power supply problems, which hurt the economy in New South Wales, nationwide, and the continent at any time.

Unfortunately, we all have issues to deal with that are out of our control; they are unavoidable and unpredictable. Yet you can ensure your own business is protected from the effects of these inconveniences by adding insurance for business interruption to your general liability policy.


This type of insurance pays for income generated through your business that you can no longer collect due to any sort of disaster. This is different from any other type of business insurance coverage because insurers do not usually cover any loss of income during a natural catastrophe or another unforeseen event like a crime or accident.


A business owner's most important asset—next to their reputation—is the business itself. If unforeseen circumstances arise, such as your company being affected by weather, flooding, fire, or theft, insurance can provide the funds needed to replace the merchandise and repair your building.

Insurance for business interruption can help by covering lost revenue in an interruption and preventing further damage.


Losing revenue is the most important thing to consider when considering property insurance. Everyone recognises that a business has to survive while its premises are being repaired.

Some of the costs during the period of closure and utilities include business loans, various lease repayments, and salaries for staff retained. These must be addressed while the premises are being repaired.

It is common for business owners to believe that either “it won’t happen to me” or if it does, it won’t take long for me to get back on my feet. Sadly, this belief is harmful. For instance, a fire can destroy your business in under an hour and keep you off the market for months.

In the end, many companies do not survive in the aftermath of a disaster because they do not have insurance for business interruptions.


Business interruption insurance can cover much more than just lost revenue. Its coverage also includes:

  • Additional costs are involved in restoring the business to operational status.

  • Preparation for claims (accountant’s or auditor’s costs).

  • Problems when getting to the premises caused by an insured event such as fire, flood, earthquake, etc.

  • Disruptions caused by a failure of public safety services, including police, fire, and EMS, connected to an insured event or even just one murder at your company’s location.

The cost of insurance for business interruption varies depending on the risk involved, but it’s generally affordable and protects your business. It’s a smart move, primarily if you regularly deal with injuries or hazardous materials.

Before You Sign the Dotted Line

Protect your assets and business by researching this modification to your general liability policy. It’s essential to carefully consider the nature of your business and the probability of any type of disaster striking to decide if this policy is right for you. Remember, it will maintain a level of protection for your business beyond your current policy's expiration date.

Get the right policy for your assets, such as insurance for business interruptions and more on New Wave Insurance! We help you develop business growth strategies to allow your business to grow and scale. Book a free 15-minute consultation now!

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