In today’s competitive commercial landscape, organisations can’t afford to miss out on revenue-generating opportunities. This is why any large-scale interruption to business can be devastating.

The impact on small companies is particularly severe, with Institute for Business and Home Safety figures suggesting 25 per cent of SMEs don’t reopen after a major disaster.

A business interruption insurance policy is designed to offset some of the risk associated with a catastrophic event that brings an enterprise’s operations to a grinding halt. But what kinds of incidents could your insurance cover?

1. Natural disasters

Australians are no strangers to extreme weather events. Cyclones, bush fires, floods and even the occasional earthquake are just some of the natural disasters organisations could face depending on their location.

These freak phenomena are likely to have a significant effect on businesses situated in their path, including major damage to the premises that could prevent staff from accessing work.

2. Essential equipment breakdown

Most companies have key pieces of equipment or systems that are crucial to business continuity. An online retailer, for example, could be completely crippled by an IT outage, while a farmer may find his job impossible without certain agricultural vehicles or machines.

Finding business interruption insurance tailored to the specific needs of your company is therefore crucial for instances when mission-critical equipment is out of action.

3. Supplier interruption

Organisations across the world are reliant on a steady stream of goods and services from other businesses in their network. As such, an unforeseen disaster somewhere further up the supply chain could be problematic.

Companies often choose to include supplier disruptions in their business interruption insurance policies to account for these types of issues when they arise.

If you would like to discuss your business insurance needs, please contact an MGA office in your area for more information.