Business Interruption Insurance

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Business Interruption Insurance

The cost of repairs and clean up after a business interruption event often pales in comparison to the lost profit for not being able to do business for a day, a week, a month, or longer. Yet too many businesses fail to include business interruption insurance in their disaster management plans. Every day your business can’t operate as normal is another day of profits down the drain. Business interruption insurance can cover you for these losses and the extra costs of alternative premises and communicating, making it easier to get back up and running. To get the right insurance, you need to talk to the experts in your industry. Talk to your local NZbrokers member today about how to protect your business.

Business interruption insurance broker

For some businesses, a day or two of interruption is no big deal. Some businesses can even contend with a week or two without worrying unduly. But every business has a breaking point: that moment where the cost of not being able to operate makes the business unviable.

If you’re hit by a natural disaster, theft, fire, vandalism, or other event that stops you from operating as normal, your first concern is usually the cost of repairs and clean-up associated with physical property. It can be expensive and sometimes slow to buy new equipment or re-fit your premises and, if you’ve been hit by an earthquake, getting your premises habitable again can be a mammoth task.

So it’s normal for your first concern to be finding a way to pay for these things.

However, the longer your business can’t operate, the more your losses will mount up. Some businesses calculate their income daily while others do it monthly or quarterly. Regardless, if your business is closed then you’re not making money. It’s that simple.

But meanwhile there are some expenses that continue, such as staff wages, rent, electricity, debts, and more. And, if your employees leave while you’re not operating, you’ll have the added expense of finding and training new workers once you’re ready to start operating again.

It all adds up and can create extra stress in an already-stressful situation.

You can manage this risk by taking out business interruption insurance. To get the right coverage, you need to talk to the experts because there’s no doubt it is complex and there are special extensions you will want to consider.

NZbrokers is a network of insurance brokers with extensive experience in business interruption insurance, and we have a broker close to you.

NZbrokers can help you:

  • find the best insurance cover for your business’s needs
  • review cover from the broadest range of insurers
  • understand premiums and risk management
  • manage insurance claims for a better chance of success.

*Talk to one of our independent brokers today to find out more. Click here to find the broker closest to you

Getting the right business interruption insurance for your business

Do you know exactly how much money your business makes in a day? Because that’s the amount of money you’ll lose if you can’t operate for a day due to some event like a cyberattack, natural disaster, fire, or theft. If you can’t operate for days on end, those numbers will just keep adding up.

Then there’s the hidden costs of not being able to operate. For example, previously-loyal customers will have to go elsewhere and they may not return to you when you’re back up and running. Your sales staff won’t be able to fill your pipeline with orders which will extend the time taken to get fully back in business. You may also incur extra costs to continue parts of your operation in order to maintain some production or output.

Cleaning up, conducting repairs, replacing lost equipment, and even moving to new premises if necessary all incur costs that you didn’t budget for. Your property and business interruption insurance will probably cover most, if not all of it.

Business interruption insurance provides a safety net to make up the shortfall in income while you can’t operate. It can be the difference between your business being able to recover or not.

A business interruption insurance policy will cover you for things like lost income, ongoing costs such as staff wages or extra costs to maintain production. Getting the right cover might be complex but it is essential, so you need to talk to an expert.

If you’re not sure, get someone who is

Working with an independent, transparent insurance broker like a member of NZbrokers means you don’t have to spend time and resources investigating all the options and hoping you don’t miss something. Your broker will be able to find the right cover for you and you may even end up paying less than you think for better cover.

Contact one of our independent brokers today to find out more.

 

 

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