Business Interruption Insurance

Business Interruption Policy

Business Interruption Insurance covers the loss of income that a business suffers after a disaster. It can also cover you when process like production lines break down and you can’t fulfil orders.

You can claim for income and profit loss, trades and extra working hours for staff as your business covers.

It is specifically designed to cover the shortfall in your gross profit caused by the interruption. The best thing to do to make sure you have adequate cover is to talk to Sureinsure about your asset value. Your assets can be covered your owned warehouse or while being stored by third party. They can also be covered when they are on the road or on the water. If goods belong to you or you are liable for their cost or transportation, We can create a policy fit for you.

Supply chains are complicated and involve many working parts and many people. That means that many things can go wrong and difficult scenarios can easily compound into drama. It can be dramatic or happen behind the scenes, either way, it can be hard to deal with.

Examples of Business Interruption

Business interruption (BI) insurance is designed to protect businesses from the financial loss that can occur when operations are disrupted due to a covered event.

Common examples of business interruption claims include damage to the business property due to a fire or severe weather, loss of power, or the death of a key employee. In each of these cases, the business may be forced to suspend operations for an extended period of time, which can lead to a significant loss of income. BI insurance can help to cover these lost earnings, as well as ongoing expenses such as payroll and rent.

As a result, it can be a vital form of protection for businesses of all sizes. One of the most common examples of business interruption is when a company has to close its doors due to damage from a fire or flood. This can often be covered by business interruption insurance, which can help to offset the loss of income that results from the closure.

Another example of business interruption is when a key supplier goes out of business. If a company is heavily reliant on a particular supplier, the loss of that supplier can cause serious disruptions. Business interruption insurance can often help to cover the costs associated with finding a new supplier. In some cases, it may even cover the costs of relocating to a new facility if that is necessary to continue operations. Ultimately, business interruption insurance can provide critical protection for companies in the event of an unexpected disruption.

What's not covered in Business Interruption Insurance?

Business Interruption Insurance is designed to cover the loss of income that a business experiences after a covered event.

However, some circumstances are not covered by this type of insurance. For example, if a business is forced to close due to a government order, this would not be considered a covered event. Additionally, Business Interruption Insurance typically excludes events that are caused by gradual damage, such as mould or water damage.

As a result, it is important to read the fine print of any policy before purchasing it. By understanding what is and is not covered, business owners can be better prepared for unexpected events.

How Long Can I Insure Business Interruption For?

For many businesses, the question of how long to insure against business interruption for is a difficult one. The answer depends on several factors, including the type of business, the location of the business, and the risk exposure. In general, businesses should insure for at least 12 months of interruption, and preferably for 24 months or more.

However, some businesses may only need to insure for 6 months or less. Ultimately, the decision of how long to insure business interruption should be made on a case-by-case basis. Factors such as the type of business, the location of the business, and the risk exposure should all be taken into account when making this decision.

How Much Does Business Interruption Insurance Cost in Australia?

The cost of business interruption insurance will vary depending on the size and type of business, as well as the location and type of coverage. The exact cost will vary depending on the specific needs of the business.

For example, businesses that operate in high-risk areas may pay higher premiums, while those that have comprehensive coverage may pay lower rates. Ultimately, the best way to determine the cost of business interruption insurance is to contact Sureinsure who can provide customized quotes based on the specific needs of the business.

Why Do I Need Business Interruption Insurance Cover?

You’ve finally done it. You’ve built up your business from the ground up, and it’s starting to really take off. But then, disaster strikes. A fire breaks out and damages your premises, or a severe storm forces you to close up shop for several days. In either case, you lose income as a result. That’s where business interruption insurance comes in.

This type of insurance covers the loss of income that results from an insured event such as a fire or storm. It can also cover additional expenses that you incur in order to keep your business running, such as the cost of renting temporary premises.

In short, business interruption insurance can help you get back on your feet after a setback, and it’s an important part of any business’s risk management strategy.

Types Of Business Interruption Insurance

Business interruption insurance is a type of insurance that can protect your business from the financial damages caused by a variety of interruptions. Depending on the policy, it can cover lost income, extra expenses, and even relocation costs.

Common causes of interruption that are typically covered include fire, flooding, and theft. This type of insurance is often included as part of a business owner’s policy (BOP), but it can also be purchased as a standalone policy.

While business interruption insurance can provide valuable protection, it’s important to understand that it typically has some limitations.

For example, most policies will not cover lost income if the interruption was caused by a pandemic or natural disaster. As a result, it’s important to carefully review your policy to make sure it meets your specific needs.


In conclusion, business interruption insurance is a vital type of coverage for any business owner. It can provide the financial means to keep your business afloat in the event that it is forced to close due to a covered event.

While the cost of premiums can vary, the peace of mind comes with knowing you are protected from potentially devastating financial losses is priceless.

When shopping for business interruption insurance, be sure to work with an experienced team such as Sureinsure who can help you tailor a policy that meets the unique needs of your business.

What can I claim for?

As long as you have discussed your supply chain, asset worth and risk factors, you can claim for many things. Business Interruptions can be caused by multiple factors. This can be caused by accidents or by malicious intent by another person or company. If you have a fire or flood that affects your property, you can claim for replacement of damaged goods. A customer who is inconvenienced by you being out of stock can sometimes pass on their losses to you or discontinue your items. In that case, you can claim lost income through interruption caused by your supplier or supply chain.

A good example of business interruption that a lot of people will remember is the blocking of the Suez Canal. The knock-on effects of the cargo on that ship and those it delayed flooded insurance companies with claims for interruptions.

When you put in a claim, you can continue to pay your rent and wage bills and maintain supplier relationships.



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