Business Interruption Insurance
Keep your business running—even when the unexpected forces you to pause. Clarke Lyons Insurance offers tailored Business Interruption Insurance to help you recover faster and stronger. When disaster strikes—whether it's a fire, flood, equipment failure, or supply chain disruption—the physical damage is only part of the problem. The real cost can be the lost income and ongoing expenses while your business is forced to close or scale back operations.
Business Interruption Insurance provides financial support to keep your business afloat during these critical times. At Clarke Lyons Insurance, we help Australian businesses protect their revenue, staff, and future with comprehensive, customisable coverage.
What is Business Interruption Insurance?
Business Interruption Insurance (sometimes called Loss of Income Insurance) covers the loss of income your business suffers after a covered event disrupts your ability to trade. It ensures you can continue to meet financial obligations and recover without compromising your operations.
Cover typically includes:
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Loss of Gross Profits or Revenue – Covers ongoing income you would have earned during the interruption.
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Fixed Operating Expenses – Such as rent, utilities, wages, and loan repayments.
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Relocation Costs – If you need to temporarily move your operations.
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Additional Working Expenses – For things like outsourcing, overtime, or renting equipment to minimise disruption.
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Claim Preparation Costs – Professional fees to help you assess and submit your claim.
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Supply Chain Disruption – Covers losses due to delays or stoppages from key suppliers or utility failures (optional cover).
Why is Business Interruption Insurance Important?
Even with property insurance, the downtime after a loss event can devastate a business. Business Interruption Insurance helps you:
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Maintain cash flow during forced closures
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Pay staff and keep your team intact
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Cover fixed costs even when income stops
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Avoid long-term financial damage
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Recover quickly and resume operations with confidence
Without it, many businesses struggle to survive the aftermath of a major disruption.
Who Should Have Business Interruption Insurance?
This cover is essential for businesses that:
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Rely on physical premises (e.g. retail stores, manufacturers, hospitality venues)
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Depend on specialist equipment or stock
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Operate under lease agreements with ongoing overheads
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Have staff and payroll obligations
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Would struggle to trade during an extended closure
Whether you're a café owner, manufacturer, medical practice, or online retailer, Clarke Lyons can help assess your risks and build the right cover.
Claim Example
Imagine a Sydney café forced to close for two weeks after flood damage:
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Lost turnover: $18,000 (based on $9,000 per week)
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Ongoing costs: $6,000 (rent and staff wages continued during closure)
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Extra expenses: $2,500 (hiring temporary storage and additional cleaning)
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Total claim covered: $26,500
Without Business Interruption Insurance, these costs would need to be paid from the café owner’s pocket.
Who Needs Business Interruption Insurance?
This type of cover is especially valuable for businesses that rely on consistent income and have fixed costs:
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Retailers & Hospitality – cafés, restaurants, shops, bars.
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Professional Services – accountants, lawyers, medical or dental practices.
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Manufacturers & Wholesalers – with supply chain dependencies.
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Technology & Online Businesses – where cyber disruption can halt trading.
Why Choose Clarke Lyons Insurance?
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Tailored Coverage – We work with you to accurately calculate your risk and income exposure.
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Expert Claims Support – Business interruption claims can be complex—we guide you every step of the way.
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Trusted Providers – We source cover from Australia's leading commercial insurers.
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Ongoing Advice – Your business evolves, and so should your protection. We review and update your policy annually.
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Local Expertise – We understand the Australian business landscape and industry-specific risks.
Combine with Property or Business Pack Insurance
Business Interruption Insurance is usually added to a broader policy that also includes:
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Machinery breakdown
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Theft or burglary cover
Let us build a Business Insurance Package that meets your specific needs.
Request a Quote Today
Don't let a temporary disruption turn into a permanent closure. Protect your livelihood with Business Interruption Insurance from Clarke Lyons. Call, email or fill out our quick online form to request a free business interruption insurance quote.
Clarke Lyons Insurance – Supporting your business through the unexpected.
Frequently Asked Questions About Business Interruption Insurance
1. What is Business Interruption Insurance?
Business Interruption Insurance protects your business from financial losses when you cannot trade due to an insured event such as fire, storm damage, or a supply chain disruption. It covers lost income, ongoing expenses, and recovery costs.
2. What does Business Interruption Insurance not cover?
It does not usually cover voluntary closures, economic downturns, loss of market share, or events that are not listed as insured perils under your policy (e.g., pandemics may be excluded unless specified).
3. How do I choose the right indemnity period?
The indemnity period is how long the insurer will cover your losses. Many businesses select 12–24 months, but some industries may require 36 months. It’s important to consider how long it would realistically take to recover operations and regain customers.
4. Who should consider Business Interruption Insurance?
Businesses with fixed expenses (like rent and wages) or those heavily reliant on consistent turnover should consider it. This includes hospitality, retail, professional services, manufacturers, and online businesses.
5. How much does Business Interruption Insurance cost?
The cost varies depending on turnover, industry risks, and the level of cover required. A broker can help find the right balance between affordability and protection.
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