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Business Interruption Insurance is a common consideration for a business. It can provide financial protection to cover a loss of turnover/profit due to damage to your premises/property as a result of an insured event for the insured and damaged premises/property. Coverage may also be provided for additional costs of working following such an event.

The details of how a Business Insurance Policy will operate can be found in the Product Disclosure Statement (PDS) issued by the Insurer. This is an important document to read before buying insurance and will note what is covered and what is excluded. The PDS and coverage will differ from insurer to insurer. Some of the exclusions that might be observed in a business insurance policy could include, but are not limited to the following :

1. Voluntary shutdown or bankruptcy
2. Business interruption unrelated to an insured property loss/damage
3. Policy limits (a cap or maximum claim amount payable)
4. Risks or issues which have already commenced before the cover starts
5. Claims that are usually insured via other policies such as Worker’s compensation claims, property and equipment damage and Public liability claims
6. Claims from Pandemics may be excluded
7. A loss of gross profit caused by a downturn in trading conditions
8. Undocumented income
9. Losses due to labour strikes and changes in legislation
10. Losses beyond the indemnity period

Like other categories of insurance, Business Interruption insurance is generally subject to an under-insurance clause. If applicable, your claim will be penalised by the amount you have under-insured. An excess (or deductible) may also apply.