The clean-up of bushfire affected communities is well under way. Many small businesses are now learning the importance of business interruption insurance.
The fires began on New Year's Eve, many insurers have reported paying claims as early as the 10th January which is within 7 business days.
Most businesses within these communities are small family run businesses, so having this support is crucial. It allows them to maintain their cash flow and pay regular outgoings such as wages and rent.
Business interruption insurance provides cover for lost income following an insurable event such as a fire. Policyholders in the best position have been those that have been able to quickly provide their financial information to support their claim.
Many small businesses affected have been able to claim lost income due to prevention of access clause in their policy. The decision of authorities to close major roads meant that the annual influx of tourists could not reach many towns affected by the fires, and at the time of writing many roads remain closed.
These disruptions have hit businesses especially hard given how reliant they are on the tourist trade during the holiday period, a time where they make the bulk of their revenue. The families that run these businesses rely on this cash flow to fund their livelihoods, so they need a policy that reacts quickly.
This event serves as a timely reminder to all policyholders to check their level of cover to ensure it provides adequate cover and that the policy includes weekly payment provisions. This can make all the difference after a major disaster to ensure businesses are able to continue to trade and maintain their obligations while they get back on their feet.
For expert advice on what kind of insurance cover is right for your business contact Chris Chapman form Petplan Professional on 03 9339 3318 or 0411 265 746.