When a client’s premises suffered serious fire damage, the business was up and running again within two weeks. Such a quick recovery was made possible because the practice had Business Insurance which included cover for Business Interruption. Their policy provided them with ready access to payments to cover temporary relocation and other after loss costs enabling them to resume normal trading.
A simple 3 step process is all it takes with MIGA Plus Business Insurance for a claim to be paid. The funds can be in your bank account within 3 days.
What is Business Interruption Insurance?
Business Interruption Insurance is designed to cover any loss of revenue, less expenses not incurred, plus the increased cost of remaining open for business. Some policies in the market make it difficult to establish what you have cover for and limit the insurer’s exposure by separating sums insured. The MIGA Plus Business Insurance policy doesn’t, it makes the total sum insured available to cover the way the interruption event impacts your business.
The policy covers, but is not limited to, the following:
- Profits your business would have earned, based on previous financial statements
- Operating expenses, such as wages and electricity, that continue even though your business activities have come to a temporary halt
- Relocation costs for moving to, and operating from, a temporary location
- Shortfall of revenue even though you are operational (the policy will cover the difference between your current revenue and your pre-interruption event revenue).
Why does your business need Interruption Insurance?
42% of Australian businesses operate without any form of loss of profits or revenue insurance. Yet an Insurance Council of Australia Study has shown that following a major damage loss, 70% of businesses fail (ICA 2002).
When disaster strikes, it can take months to get your business back on track.
Defining your Business Insurance needs and sourcing the right cover for your business can be a confusing task. The MIGA Plus team is available to help. They can provide advice on the needs of your business and arrange a competitive quote, simply call them on 1800 835 808.