What is Business Interruption Insurance?

What is Business Interruption Insurance?

Business interruption insurance provides adequate compensation to cover the loss of profit following an insured event (such as a fire or natural disasters) that prevents a business from operating.

What does it cover?

Business interruption insurance generally covers:

  • Operating expenses
  • Temporary transplant of operations
  • Income
  • Payroll
  • Taxes
  • Credit payments

With price varying from business to business on insurance premiums available and packages selected.

What can Business Interruption Insurance do for you?

Business interruption insurance can:

  • Cover interruption costs associated with damage to your business or another business like a key supplier.
  • Cover interruption costs associated with key customers unable to purchase your goods.
  • Keep you stable while waiting for blueprints or plans to be constructed or approval from regulatory bodies such as local council.
  • Allow you to retain and pay critical staff members until the business is more stable.

Following the selection of general business insurance plan or interruption insurance, you will be required to select an indemnity period, which will be the period your business is financially covered for.

How long would your business survive interruption?

If your business was forced to close for 6 months, would it be able to survive?

On the 10th of October 2020, Small Business Australia’s executive director Bill Lang estimated that 200,000 of Victoria’s 600,000 small business would fold or were on the brink of collapse in response to enforced closure and the end of JobKeeper supplements in March 2021. Without the assistance of government programs, this number would certainly be far higher.


If you’d like further information or a consultation with a qualified insurance professional, get in contact with our team today.