Business Interruption Insurance, Explained With a Real Scenario
The cover that keeps paying your rent, wages and profit while your business can't. Walk through a real-world fire claim.
Imagine a fire guts your café tonight. Property insurance rebuilds the fit-out and replaces the equipment — but the rebuild takes eight months. Who pays the rent, the loan repayments and your income during those eight months? Without business interruption cover, you do.
What it covers
- Lost gross profit while you can't trade
- Ongoing fixed costs — rent, leases, loan repayments, retained wages
- Increased costs of working — temporary premises, hired equipment, overtime
- Claims preparation costs — accountants to quantify your loss
The one setting that ruins most BI claims
The indemnity period — how long the policy will pay. Many businesses choose 12 months to save premium. But consider: demolition approvals, insurance assessment, design, council permits, construction, refit, and rebuilding your customer base. Realistic recovery is often 18–24 months. An indemnity period that expires mid-recovery stops paying exactly when you need it most.
Need business insurance?
Complete protection for Australian businesses — property, liability, interruption and more in one tailored package.