CYCLONE DEBBIE & WHY YOU NEED BUSINESS INTERRUPTION INSURANCE

Cyclone Debbie has had a devastating effect on all impacted by the storms in Queensland last week. All business owners should consider the importance of not just protecting their property and assets, but also other insurable risks.

During events like Cyclone Debbie, businesses are forced to close, unable to trade and lose revenue. However, business expenses such as wages, bills and loan repayments, don’t stop, only adding to your troubles.

Business Interruption Insurance (BI) can assist in recovering from the impact of insured events by covering the loss of your gross profit. Not only keeping your business alive, but putting you back into the position you would’ve been had the event not occurred.

We often hear that Business Interruption is an unnecessary expense since relocating would be easy and disruption would be minimal. Unfortunately in widespread events, this is often not the case without substantial costs being incurred, such as:

• Rent for an alternative premises, if an alternative premises can be located
• Moving/hiring equipment if available; as equipment may be damaged
• Overtime to staff and contractors to set up the business temporarily
• Additional IT costs

These costs can add to your expenses at a time when your income is being impacted, adding financial pressure when you least need it.

Studies indicate that as many as 9 out of 10 businesses that do not have Business Interruption insurance and suffer a major stoppage have shut down within 3 years. Those with Business Interruption tend to have survival rates at or better than average.

Be a survival story and protect your business with Business Interruption insurance.

For more information please see our Business Interruption page, or one of our BJS Insurance Brokers are here to assist you. Contact us and we would be happy to discuss your Insurance requirements.