Four tips for claiming business interruption insurance

business interruption insurance

The bushfire crisis of Australia’s summer of 2019/2020 had severe impacts on businesses in fire zones and surrounding regions. The tourism business sector alone experienced losses said to be in “the hundreds of millions of dollars”. Tourists evacuated in droves, future accommodation bookings were cancelled, and business owners were left without the critical cash flow of their peak season.

As business owners started contacting their insurers about claiming for their losses, debate about business interruption insurance hit the media. The bottom line is that business interruption insurance policies vary in scope.

Some insurance policies only cover the direct impact of a business premises being destroyed or inaccessible, while others extend to indirect losses. Indirect losses can include: prevention of access to premises; loss of power supply; or loss of customers or suppliers.

Insurers settle business interruption insurance claims by relying on:

  • Your previous trading history, and
  • Your intended recovery plans.

To make sure your business interruption insurance meets your expectations, Barrack Broking offers four tips to act on before disaster strikes.

Acting on these tips will help minimise the possibility of a claim dispute and get you back to business.

  1. Have current valuations ready. Property owners need to have their most recent building valuation to hand. We recommend that buildings be professionally valued on a periodic basis, say every three years.
  2. Record your assets and inventory. Keep detailed records of assets and inventory, including replacement values, makes, models and serial numbers.
  1. Review risk and policy in advance, On an annual basis, work closely with your broker and accountants to review your risks and understand how business interruption sums insured are calculated. An annual review will pick up on any unexpected changes in trading which may impact the calculation.
  2. Develop a Business Continuity Plan. A plan will help you consider risks which may interrupt your operations and how you can respond.


Barrack Broking is here to assist
If you have concerns about your level of preparedness for presenting your claim or if you are experiencing difficulties in how a current claim is being handled, please contact us for a confidential discussion. Call: 02 9191 7320 or email:

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Barrack Broking

In 1849, an Australian insurance company and mutual society was founded. It opened its doors in a small office above a fruit shop in Sydney, opposite Barrack Gateā€¦ and rose to become the largest insurer in the British Empire. Today, Barrack Broking is opening its doors. 170 years later, albeit embracing those same values and insuring Australian greatness.

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