Business Interruption Insurance

Business Interruption Insurance protects your business’ ability to keep on running when unexpected interruptions from property damage occur.

What is business interruption insurance?

A business interruption insurance policy can cover the loss of any revenue or profit you would have made while your business is out of action – plus any extra costs you incur to stay open.

Business interruption insurance can help your business to keep running if the insured property is lost or damaged after a catastrophic event such as fire, by covering ongoing costs so you can recover and rebuild.

How your business can be protected with business interruption insurance

Lost revenue or profit
Due to temporary closure of your premises
Ongoing operating expenses
This includes employee payroll, electricity and rent expenses
The costs associated with moving to, and operating from, a temporary location
This could cover the costs for operators of replacement machinery
Closure of your business premises
This may be necessary due to government-ordered street closures or curfews
Damage to a supplier’s premises
Protecting you from a negative flow on effect to your business operations

Does my business need business interruption insurance?

If there was a major disruption to your business, how long could your business survive?

Business interruption insurance can get you through a temporary crisis by protecting your cashflow – so you can pay these expenses and help ensure the future of your business.

Most businesses are exposed to an unforeseen loss of income. The type of events which can lead to a significant loss of income include:

  • Events causing property damage such as fire, flood and storm
  • Cyber events such as ransomware and denial of service attacks
  • Equipment breakdown where critical machinery can take time to be replaced or repaired

Examples of when business interruption insurance is essential

When the normal operations of your business are interrupted by unexpected property loss or damage, your business income can also be interrupted. Without the usual stream of income, your business may struggle to cover its operating costs and continue to operate normally.

For small to medium-size businesses, even a short “out of business” period could have a significant financial impact on the business. For example, a flood could force a business to temporarily shut down or reduce operations.

Tips or other things to know about business interruption insurance

There are some exclusions to what business interruption insurance covers. There is also often a deductible or excess and limits on cover. Our broker team will explain how the policy works, whether you’re an established business or just getting started.

Have a question? We can help

What are the most common causes of a business interruption?

The most common causes of a business interruption are:

  • Fire damage
  • Natural disasters causing property damage such as storm damage
  • Supplier failure such as an IT failure that prevents customers from placing orders or interacting with your business online
  • Cybercrime incidents
  • Machinery breakdowns
Does business interruption insurance cover power outages?

The answer to whether business interruption insurance covers power outages depends on the type of policy you have.

Firstly, for any claim to be paid as a result of loss of turnover, the business must have a business interruption insurance policy.

Secondly, although a business may have this cover in place, in some instances, policies may exclude claims made if the utility (electricity, gas, water supply systems) is not immediately adjacent to the insured premises.

Thirdly, even when business interruption insurance covers you for utilities not adjacent to the insured premises, there is generally an excess period of 48 hours.

So, in the case of an extended outage, your business would be covered if you were without power for more than 48 hours.

What is covered under business income?

A business income insurance policy may vary depending on the insurer, but business interruption coverage typically includes compensation for:

  • Lost revenue or profit – based on previous financial records
  • Mortgage, rent and lease payments
  • Employee payroll
  • Taxes and loan payments which are due during the covered period
  • Relocation costs if the business must move to a new or temporary location due to physical damage to the business premises

Our brokers compare the myriad of insurance options on the market for you, providing expert advice to implement your chosen plan.

NewSure makes understanding business interruption insurance costs easy. From providing detailed quotes to understanding your business interruption insurance policy document, we provide tailored insurance solutions to protect your business.

Insurers we work with

Allianz insurance quotes – NewSure Insurance Brokers
QBE insurance quotes – NewSure Insurance Brokers
Chubb insurance quotes – NewSure Insurance Brokers
Vero insurance quotes – NewSure Insurance Brokers
CGU insurance quotes – NewSure Insurance Brokers


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We know that navigating the world of insurance can be complex and confusing. Our brokers compare the myriad of insurance options on the market for you, providing expert advice to implement your chosen plan.

We empower thousands of Australian businesses to focus on what they do best, knowing they’re protected against any possible eventuality.