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Business interruption insurance

Property damage thrown off your day-to-day operations? Get back in the green faster with business interruption insurance.

What does business interruption insurance cover?

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Beneficial across the board

Sole traders and SMEs are especially vulnerable to major disruption. But all businesses benefit from business interruption cover. Size, form and industry aside.

Loss of income

Income taking a hit? Forced closures, fires and sudden crises can hurt your business and your wallet. Business interruption cover can help make up for revenue you would have made had the worst never happened.

Ongoing expenses

Expenses never stop. Even when you’re not bringing in revenue. Business interruption insurance can help cover fixed costs – such as wages, rent and supplier invoices – while you get back up to speed.

Costs of recovery

Recovery after a sudden interruption takes time. If you need to move to new premises, replace equipment or kickstart a business with advertising, business interruption cover can help cover the costs.

Supply chain disruptions

Some interruptions start further upstream. If a supplier’s or manufacturer’s premises is damaged, business interruption insurance can help cover the flow-on impact on your business operations.

Service provider mishaps

All businesses depend on service providers to keep running. But they face disruption, too. Business interruption insurance can help cover problems caused by power, water, gas and telecommunications outages.

General exclusions

Policies can differ between insurers. For a breakdown of all your exclusions, study your policy wording carefully – and speak to a Marsh broker for advice.

Voluntary closures

Marsh can’t cover closures or shutdowns of your own volition. If your business interruption is unrelated to property loss, property damage, or an event like a fire or flood, we can’t cover the costs.

Past interruptions

Insurers can’t cover risks that have already come to fruition – such as those caused by COVID-19. Business interruption cover can only protect you against interruptions that happen after you become insured.

Outside indemnity period

If an interruption happens outside of your indemnity period – the time in which an insurer will pay for interruptions – your policy can’t cover the financial fallout.

Equipment breakdown

A business interruption policy may not cover the costs of broken or damaged equipment – but we can arrange a business insurance policy that will. Speak to a Marsh advisor for details.

Key product highlights

Get back on your feet fast

Business interruption cover is designed to help restore your business to its former glory – by covering lost income, cash flow and ongoing costs.

Survive a crisis

Many Australian SMEs wouldn’t survive a lengthy shutdown. Business interruption cover can be critical in helping you through a temporary crisis.

Protect your staff

Your people are the backbone of your business. Continue to pay your staff – and retain key players – while your business recovers from a crisis.

Soften supplier issues

Business interruption cover isn’t only for your business. If a supplier you depend on runs into problems, this policy can help cover the damage.

Australian Mid-Year Insurance Market Update for 2023

For more detail on the property insurance market and other types of insurance – liability, financial and professional lines, cyber, construction and more – check out our full report.

Why Marsh?

Why should you choose Marsh to arrange your insurance solutions?

Trusted by 130 associations

We are proud to be the endorsed insurance broker for more than 130 Australian industry groups and member associations, developing insurance solutions that help meet the risk and insurance needs of businesses across a variety of industries.

Local expertise

Our Australia-wide network of brokers have spent years at the coalface supporting business owners manage their unique risks in a fast-changing market. They keep ahead of the latest market insights both local and global and break down the jargon into your language.

Claims support

Handling an insurance claim can quickly become overwhelming, not least when your time is stretched to the limit keeping your business going in the backdrop. We help take the load off and manage, negotiate and settle claims with insurers on your behalf.

Why use a broker?

Choosing business insurance means navigating through products, coverages and policy terminology – with a sales pitch as your only guide. An experienced broker will spot your unique set of risks, match you to the right choice, and advocate for you on price.

Related insurance solutions

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Business insurance

Need a range of covers to suit your business needs? Explore Marsh’s business bundles for glass, theft and contents cover – and more.

Public liability insurance

Help protect your business against third-party accidents and costly legal fees. Let us arrange the right cover for your needs.

Management liability

Help protect your business – and your team – against management and operational risks with management liability cover.

Allied health insurance

Arranging cover options for more than 700 allied health modalities, we’re here to support the vitality of your health service.

Events insurance

Let Marsh cater to your industry’s unique insurance needs – so you can keep your focus on the celebrations.

Hospitality insurance

Hospitality workers work hard. Take a load off – let us arrange a comprehensive policy tailored to your needs.

Professional services cover

You’re an expert in your field. We’re experts in ours. Let Marsh arrange professional services cover tailored to you.

Retail insurance

Whether you’re online or in-store, let Marsh service your insurance needs – so you can stay focused on your customers.

Tradies insurance

Our experienced trades team can arrange comprehensive cover at competitive rates – and get you a certificate of currency on the same day.

Frequently asked questions

Business interruption insurance typically covers loss of income and increased operating costs due to an insured event, such as property loss or property damage.

Generally, this policy covers:

  • Loss of income

  • Ongoing expenses (like payroll, financing and other fixed costs)

  • Additional costs required to return to normal business operations

  • Revenue-earning operations and supply chain issues

  • Disruption caused by service providers (including power, telecommunications and water).

An indemnity period is the length of time a business interruption policy will pay for the interruption of your business. It should represent the maximum amount of time it will take to return business operations to normal after an insurable event.

The appropriate indemnity period for your business will depend on several factors. It’s wise to discuss this in-depth with your insurance advisor.

The amount you pay for business interruption insurance varies depending on the size, nature and location of your business. Different insurers may also have different pricing structures.

Also, it’s important to get your declared values right when obtaining a quote for business interruption insurance. This will ensure you only pay what you need to.

The amount you pay for business interruption insurance varies depending on the size, nature and location of your business. Different insurers may also have different pricing structures.

Also, it’s important to get your declared values right when obtaining a quote for business interruption insurance. This will ensure you only pay what you need to.

SME stands for small-to-medium enterprise. Sole traders and small-to-medium-sized companies all fall into this category.

For these businesses, even a short period of downtime can be devastating in the long term. That’s why we strongly recommend business interruption insurance for all SMEs.

Imagine an insurable event happens to your business. A fire, storm, theft, burglary. Would you still be able to pay rent, utilities, staff wages and operating costs?

If not, business interruption insurance can help cover you. It provides protection for loss of income and increased operational costs caused by an insured event.

LCPA 23/127

Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369) (“Marsh”) arranges the general insurance (i.e. not the Discretionary Trust Arrangement) and is not the insurer. This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). Any advice or dealing in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). JGS and JLT are businesses of Marsh McLennan. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.