A cyber hack, Cyclone Debbie, a terrorist attack. What do all these incidents have in common for SMEs? A trading halt, business interruption.
This interruption could last days or weeks – or months. That’s your livelihood at stake.
This is where business interruption insurance comes in.
Never heard of it? You’re not alone. At least a quarter of SMEs claim they don’t know what it is and less than 40 per cent have business interruption insurance in place.
Business interruption insurance is business income protection. It covers more than just profit. It can pay for expenses such as the lease, car, and staff as your business gets back on its feet.
For example, when Cyclone Debbie hit North Queensland early this year, Walkerston Day Care Centre in Mackay went under water. Yet, the centre was up and running again in a week, as their insurance broker organised the claim, assessors and even trades to help with the clean-up. The centre had taken out flood cover and cover for loss of business based on its insurance broker’s advice.
Do you need business interruption insurance? If you answer “yes” to any of the following points, it should be high on your list:
What should you consider when taking out a business interruption policy?
As you can see, things can get a little bit confusing and time-consuming. Many SMEs find an insurance broker, an expert in insurance policies and risk, can help them find the right insurance cover their business.
An insurance broker is a licenced professional who works on your behalf, not insurance companies. Additionally, your insurance broker will also be there for you at claims time to help you navigate the process and liaise with the insurance company.
Now the easy part. Here’s a free service to find yourself a broker – needabroker.com.au. It is not linked to any brokerage or insurance company, but run by the National Insurance Brokers Association (NIBA), the peak body representing insurance brokers. Or call the hotline 1300 53 10 73.
Brought to you by Dallas Booth, CEO, NIBA