Business Interruption Insurance Underinsurance

Our aim is to help ensure the success of your business, which you have worked so hard to build. And there are a few ways we can work with you to help achieve this, by:

• gaining a greater understanding of your business and its risks, 
• providing expert advice on the type of risks that could impact your business, 
• helping you to understand the many types of insurance covers and why your business may need these, and

It's a sad fact that many small businesses fail after an unexpected event because of inadequate insurance. Research has shown that 70% (Insurance Council of Australia) of uninsured or under-insured businesses that incur a major insurable loss fail within the following year.

From our experience, many business owners understand why they need the basic insurances such as fire, burglary, glass, money and liability, but don’t understand the need for other insurances such as business interruption (BI). This is highlighted through the alarming statistic that only 31% of businesses actually take BI insurance (Cameron Research).

BI is a bit like personal accident cover for your business. After a major loss, not only does it cover your net profit and business drawings, it will help you meet ongoing business expenses, such as ensuring everyone’s salaries are paid and business loans repayments are met. It also covers additional expenses incurred to maintain turnover which could include providing funds for the cost of alternative premises or even paying for advertising to announce the recommencement of your business.

It covers all this and is a relative inexpensive form of insurance, so why wouldn’t you want to ensure your business is covered. Without it, a business actually has less than a one in 10 chance of survival following a major loss (Allan Manning LMI Group). We welcome the opportunity to assess your business risks and discuss your insurance needs with you.

For more information, visit our website: www.optimuminsurance.com.au