Business Interruption Insurance for PNG Organisations

While your business might recover from material damage to its physical assets, can it sustain the consequential losses?

When your business experiences material damage the insurance can cover the cost of repair or replacement.

But what about the time it takes to get operational again?

The interruption to your business operations can mean lost sales, spoilt goods, and more.

You might face the need to downsize the team. Perhaps the sequence of events will place the business in jeopardy. No one wants those outcomes.

You can't recover lost time, but sometimes you can recover the lost income.

Business interruption insurance can cover lost income from orders received but not fulfilled due to exposures covered by your policy.

With continued income, you're better able to retain the trained staff you'll need when the business is operational again. And you're better able to meet your other obligations as a business.

Think of business interruption insurance as buying time in advance of when you might need it to get operational again.

If your worst nightmares eventuate, you can protect your business reputation if you manage the situation well. The prudent manager thinks about these things.

_{If your business suffers loss and or damage as a result of an insured peril or contingency, a subsequent downturn can result in a reduction of gross profit.}

_{That situation can lead to abnormal trading, and a downturn in revenue can lead to a disastrous outcome for the business, even closure.}

_{As a business decision-maker, you need to consider more than the prospect of damage to the fixed assets of your business.}

_{To be prudent, you also need to consider how the business might survive during any downtime, while you are reinstating or repairing the damaged assets.}

_{Your business has an insurance policy for 'fire and perils' or for 'industrial special risks'. Either way, your broker might also propose a business interruption insurance policy.}

_{A business interruption insurance policy can help pay ongoing expenses such as wages and the commercial lease or rent or other suggested solutions.}

_{Your independent broker will advise you on those choices, and how to provide cover against subsequent business interruption losses.}

_{Next Steps? Talk to your independent insurance broker about business interruption insurance, and ask for a quote from Niugini Assurance.}