Running a business in Australia comes with financial risks — many of which are hard to predict. Malicious damage, storm damage, or accidental fire can interrupt your operations, leaving you without income but still facing rent, payroll, and supplier invoices. That’s where a business interruption policy becomes essential.
At Atlantic Insurance, we help business owners protect their income and plan for continuity with tailored insurance strategies built around risk, revenue, and resilience.
Understanding Business Interruption Insurance
A business interruption policy (also referred to as loss of income insurance, business disruption insurance, or business continuity insurance) helps cover your financial losses following an insured event. These include but are not limited to fire, storm, theft, or malicious damage that forces you to shut down or scale back operations.
While a property insurance policy focuses on repairs to buildings or assets, business interruption insurance replaces lost revenue, ensuring your business can maintain key operations and meet ongoing costs.
What Does It Cover?
Typical coverage may include:
- Lost turnover or gross profit based on historical trading
- Ongoing expenses like rent, wages, utilities, and loans
- Additional costs you incur following a loss or increased costs of working
- Temporary relocation to a specific location if the premises are inhabitable
- Support for retraining key staff or temporary labour
- Business continuity support for up to 12 months or more
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The indemnity period — how long these benefits apply — is a key factor in your policy’s strength. At Atlantic Insurance, we help clients choose a period that reflects a realistic timeframe for recovery.
Real Business Disruption Scenarios
Imagine a café closed after a storm-related roof collapse, or a manufacturers warehouse shut due to water damage. Revenue stops, but your overheads remain. For many, this creates immediate financial strain.
Business interruption insurance ensures you’re not forced to dip into savings, lay off staff, or default on obligations while navigating repairs and delays. Some businesses also benefit from compensation for costs of replacing equipment or additional working costs, if these prevent long-term loss.
What’s Not Covered?
Understanding what exclusion terms apply is just as important as knowing what’s covered. Most policies will not include:
- Pandemics or government lockdowns
- Gradual deterioration or damage from poor maintenance
- Losses that can’t be documented with financial records
- Specific uninsured events such as Flood if your Policy is not extended to provide Flood cover
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Always review your insurance policy with a broker to ensure you’re not exposed to hidden risks.
Why the Right Indemnity Period Matters
Many businesses assume six months of cover is enough, but rebuilds, claim delays, or supply chain disruptions can stretch far longer. Selecting a 12- or 24-month indemnity period offers greater certainty, especially in industries reliant on equipment or customer foot traffic and our experienced brokers at Atlantic often recommend indemnity periods greater than 24 months.
Atlantic Insurance helps business owners compare policies and ensure ongoing expenses are fully protected throughout the recovery timeline.
Claim Support and Policy Review
Filing a claim can be complex without professional support. Our Client Managers assist throughout the process — from preparing financial documentation to negotiating with the insurer. We also provide claims advice for existing clients and regularly review policies to match business growth, market changes, or new insured events.
How It Supports Business Continuity Planning
Business continuity planning is about preparing for disruption and returning to operations efficiently. Insurance is a key part of that plan. By integrating your business interruption cover with contingency workflows and operational redundancies, you reduce downtime and build long-term resilience.
Clients who work with Atlantic Insurance are guided through all aspects of this planning, including risk assessment, cover alignment, and recovery processes.
Why Atlantic Insurance?
With deep experience in supporting businesses across trades, retail, hospitality, and professional services, Atlantic Insurance offers practical advice grounded by industry needs. We compare policies across leading providers and explain complex terms without jargon.
Whether you’re a small business owner insuring your premises or a growing company looking to protect gross revenue and payroll, our team is here to help tailor the right policy for you.
Ready to protect your business against the unexpected?
Speak with a Client Manager at Atlantic Insurance today for an obligation-free review of your current cover. We’ll help assess your risks, simplify your options, and ensure you’re prepared for whatever comes next.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. You should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.