Could Your Business Survive Six Weeks Without Trading?
RSM Tasmania provides the Business Insurance Tasmania business relies upon to help protect against a wide range of risks—some of which you may never have considered.
Imagine arriving at work tomorrow morning to find your shop, office or workshop completely untouched. The lights are on, your stock is exactly where you left it and nothing inside has been damaged.
So What’s The Problem?
The problem is a flooded river several kilometres away has closed the only access road into your business district. Customers can’t reach you, deliveries have stopped and emergency services have closed the area while floodwaters recede. Even when the roads reopen, the clean-up could take weeks before business returns to normal.
Your premises haven’t been damaged, but your income has stopped.
The Problem Is Called ‘Business Interruption’
Situations like this are just one example of why Business Interruption Insurance can be integral part of protecting your business.
Business interruption doesn’t only happen because of floods. Fire, storm damage, major power outages, burst water mains, neighbouring property damage and other unexpected events can all force a business to close temporarily. While the doors remain shut, many of the expenses don’t stop.
Rent still needs to be paid. Staff wages may still need to be covered. Loan repayments, utilities and other ongoing commitments continue to arrive, even if customers cannot.
For many businesses, it’s not the damage itself that causes the greatest financial pressure—it’s the loss of income while trying to recover.
So What Is Business Interruption Insurance?
Business Interruption Insurance is designed to help businesses manage that difficult period by assisting with ongoing operating costs and helping to reduce the financial impact of an unexpected interruption. The exact cover will vary depending on your policy and circumstances, so it’s important to understand what is and isn’t included.
Every business is different. A retail store, café, manufacturer, professional office or trades business may all face very different risks and recovery times following an unexpected event.
That’s why reviewing your insurance with an experienced insurance broker can be so valuable. As your business grows and changes, your insurance should continue to reflect your current operations rather than the business you were running several years ago.
How RSM Tasmania Can Help
At RSM Tasmania, we work with businesses across the state to help identify potential risks and recommend insurance solutions that suit their individual circumstances. Sometimes it’s the risks you haven’t considered that can have the greatest financial impact.
Because when the unexpected happens, protecting your building is only part of the picture.
Helping your business continue trading—or recover as quickly as possible—can be just as important.
The Insurance Council of Australia provides useful information about preparing businesses for natural disasters and understanding business risks.
If you’d like to review whether your current insurance arrangements still meet the needs of your business, the experienced team at RSM Tasmania is always happy to help.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
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