It is estimated that up to 40% of Australian small to medium sized businesses are inadequately protected against catastrophes that could affect trade and income or result in un-budgeted expenses. While most business owners have property insurance, very few have ever considered getting business interruption and income protection cover. What’s the difference? Well for 70% of businesses who aren’t fully covered, it’s the difference between surviving a disaster and closing up shop.
Property insurance covers your physical assets if you are hit by lightening, ravaged by flood or fire, or experience any other disaster that damages tangible property. But that damage might also effectively block, interfere with, or severely compromise the running of your business and you’ll still need to keep up loan payments, pay wages, rent, bills, and sundry other business expenses as well as your own personal expenses. If you don’t have business interruption and income protection cover then then these expenses may bankrupt you.
Your policy, can cover you for cost of relocation, ongoing expenses, loss of profit, and other costs incurred by a major incident.
Talk to an adviser to determine whether you need business interruption and income insurance.
*Disclaimer. This information is of a general nature and should not be considered advice. Please consult a business or financial professional to discuss your particular circumstances.