Business Interruption Insurance – A Key Advantage for Business Survival in Tough Economic Times

by Insure Online #1 Leading Business Insurance New Zealand

As a business owner, you know there is more to protecting your business than simply insuring your business physical assets. You will always expect an income stream that covers the operating cost and gives you a reasonable level of profit and a good standard of living. But what can you do to keep your business running smoothly in the event of a loss? Business interruption insurance in NZ is probably the most valuable coverage your business can have in the event of a loss or disaster. This insurance coverage is designed to bring business back into operation and in the same financial position as if the loss has not taken place.

What will your business interruption insurance cover?

Business interruption insurance will provide coverage if your business has to move or is closed down and covers ongoing expenses like payroll, financing and other fixed costs. It will also cover revenue earning operations, supply chain, and disruption caused by service providers including power, telecommunications, and water. Business interruption insurance will also cover costs that may be required to accelerate the return of normal business operations. The cost associated with moving to and operating from a temporary premise may also be covered. Remember, conditions apply for each policy and the coverage may be different based on specific clauses in the individual policies. You can ask your service provider offering business insurance in NZ to explain the benefits and exclusions pertaining to your policy.

What is the tenure of business interruption insurance policy?

Before buying a business interruption insurance policy, it will be important to know how long will the policy pay for the interruption to your business? You should review this carefully. This period is known as indemnity period and it should represent the maximum amount of time it will take to get your business back to normal after the event of a loss. Factors to consider include the time to find and fit out alternative premises, repair, and installation of replacement equipment and the time it will take to return to your normal premises after repairs and re-opening.

A reputable and experienced business insurance product can help manage the risks and provide the most appropriate business interruption coverage for protecting your business in the event of loss, backed up by the right indemnity period. At Insure Online, we have a specialist business interruption insurance policy to assist you in a better way. Get in touch with us for more information at our website.