All businesses face different uncertainties and risks. Sadly, many of them are unable to cope up with the loss of income and often results to closure of their operations because of these risks. They face risks of natural calamities such as storms, floods or earthquake, fire, and so on. They also face man-made risks like vandalism, etc. Therefore, to protect their businesses from risks, business owners should consider purchasing business insurance particularly Business Interruption Insurance or also known as BII.
There are many risks that are associated with business interruption such as property damage, equipment break down, fire, flood, theft and any unforeseen risk that your business is not prepared for. During such calamities, your business is forced to shut down temporarily. This leads to huge financial loss and loss of profit.
Business Interruption Insurance is important as it softens the effect of the loss due to the natural disaster. Having your home or business building devastated by a natural disaster is so painful. But when you are covered by insurance, your burden is lessened. Apart from being a smart decision, buying insurance is also a requirement by lending institutions.
Over the last few years, there have been many serious floods, fires, cyclones and storms in Australia and many people have found out too late that they did not have enough insurance cover on their home.
For more on business insurance, read this: https://www.moneysmart.gov.au/insurance/home-and-contents-insurance/storms-floods-and-fire