Is your business adequately protected?
Federal Government statistics show that of all businesses involved in a major loss – 43% never trade again and 28% fail over the next 3 years. This statistic means only 29% survive and 71% disappear.
The effect on a business
Not only do 71% of businesses disappear, but the closure of the business can also impact on the owners being unable to maintain cash flow to meet on-going personal expenses such as the ability to service debt (ie Mortgages, Vehicles) and school fees.
The end result
In the short term – No net profit
In the long term – Loss of markets and potential business failure
Why business interruption insurance is necessary
A business protects it’s assets by purchasing material damage insurance for buildings, stock, contents etc. it is equally important that a business insures for the earning capacity of the business in order that it continue after a loss and this should be done by means of business interruption insurance.
Essential elements of a business interruption policy
Even if you have some form of business interruption insurance in place, it is essential that cover has been arranged properly.
This includes ensuring the maximum indemnity period is adequate not only to cover the construction period for rebuilding, but also to re-gain pre loss turnover.
Don’t wait to have a claim before you discover your business is ‘exposed’. Simply talk to us and let us review your current insurance arrangements.