By Chris Dougherty, General Manager, Westlawn Insurance
During the first few months of 2013, Northern NSW certainly experienced the wrath of nature with flooding and storm damage hitting many parts of the region. And as the weather now begins to warm up once again, we are reminded that the summer bushfire season will soon be upon us.
For many businesses, the disruption that can follow natural disasters in the weeks and months to come can be devastating. Some businesses could take years to fully recover. Other businesses may never recover at all.
Unfortunately, what many business owners don’t realise is that there is a way to protect your business from the unexpected loss of income due to events such as fire, flood, storm damage or other natural disaster.
Business interruption insurance can provide a valuable safeguard against the loss of income your business may suffer following any such disruption.
Challenges your business will likely face
Some of the challenges your business will likely face in the aftermath of a natural disaster may include:
Operating at below capacity or being unable to operate at all
Loss of profits on damaged or destroyed stock
Breaking of contracts and loss of customers to competitors
Temporarily relocating while premises are repaired or rebuilt
Delays in sourcing replacement parts and in repairing damaged plant and equipment, and
Damage to your key suppliers, customers and utility providers.
Helping your business get back on track
With the right business interruption insurance, however, you can help ensure the survival of your business as you face these challenges. Your business interruption insurance policy can pay your regular business expenses such as:
Rent or mortgage payments
Repayments on plant and equipment
Utility costs such as power and water, and
Staff salaries and redundancy payments (if required).
This leaves you to concentrate on getting your business back on track without worrying how you’re going to cope financially.
So the next time the elements strike, make sure your business is prepared.