Business Interruption - DKG Insurance Brokers
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Business Interruption Insurance

If your business suffered an unexpected disruption, such as a fire, flood or storm, or a major supplier closes because of one of these events, how long would it take to get it up and running again? And how much would you lose along the way?

Business interruption insurance can help make sure your business keeps running smoothly after an unexpected event, by covering the turnover that is lost – so you can recover and rebuild.

At DKG Insurance Brokers, we understand that the needs of each client are different, therefore we will take the time to assess your individual risk requirements and deliver a bespoke solution. Please reach out to one of our experienced brokers today.

Exclusions to public liability, property and business insurance for communicable diseases such as COVID-19 were in place prior to the outbreak of the pandemic, however, some policies failed to reference the relevant legislation, creating ambiguity around the scope of the exclusion. Insurers have now rectified the perceived error of citing the Quarantine Act 1908 rather than the Biosecurity Act 2015 and, in some cases, expanded to make the communicable disease exclusion broader.

Important note − The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. When making decisions about business interruption insurance, please consider the Product Disclosure Statement.

“Every business is vulnerable to events like fire, flood or burglary. But while most businesses have insurance to cover their buildings, equipment and stock, many don’t protect their greatest asset of all – their ability to generate revenue.”
Interruption Underwriting Agencies

Business interruption insurance can cover the loss of any sales you would have made while your business is out of action – plus any extra costs you incur to stay open.

Depending upon the policy, business interruption insurance can cover:

Type of cover Potential benefits
Revenue/income Income that would have been earned during the period the business cannot operate.
Fixed costs Operating expenses and other costs still being incurred by the property (based on historical costs).
Temporary relocation The extra expenses for moving to, and operating from, a temporary location.
Extra expenses Reimbursement for reasonable expenses (beyond the fixed costs) that allow the business to continue operating while the property is being repaired.
Civil authority ingress/egress Government-mandated closure of business premises that directly causes loss of revenue such as street closures.

What usually isn’t covered?

Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. In order to claim under a business interruption policy, the loss has to arise from damage to property (buildings, stock and contents) which was insured and the damage to property has to be claimable under that policy.

Business interruption insurance is subject to the same exclusions as those in the policy covering buildings, stock and contents.

Important note − The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. When making decisions about business interruption insurance, please consider the Product Disclosure Statement.

“Every business is vulnerable to events like fire, flood or burglary. But while most businesses have insurance to cover their buildings, equipment and stock, many don’t protect their greatest asset of all – their ability to generate revenue.”
Interruption Underwriting Agencies

“Every business is vulnerable to events like fire, flood or burglary. But while most businesses have insurance to cover their buildings, equipment and stock, many don’t protect their greatest asset of all – their ability to generate revenue.”
Interruption Underwriting Agencies