Business interruption can happen for any number of reasons. An act of God like an earthquake, fire or even tsunami can damage or destroy your premises and equipment, as well as force business to grind to a halt as customers and suppliers recover.

40% per cent of SMEs fail immediately once a loss occurs, while 25 per cent do so within 12 months.

Surviving in business after such an event comes down to:

• knowing where you are most vulnerable
• having the right insurance cover in place
• having systems in place to make quick resolutions

Any time the normal pattern of business is negatively affected and a material damage claim is made, your business would also be able to call on it’s business interruption policy which covers any consequent loss of revenue or profit.

Calculating where you’re vulnerable and getting the right cover in place

A good insurance broker will be able work with you to examine your finances and establish a suitable business interruption insurance solution that ensures you have the right cover in place.

Due to the complex way business interruption cover is calculated a variety of financial information and documents are required.  Xero, the accounting software firm, has recently launched its Business Connect Network. This allows small businesses to automatically retrieve the financial information they need to develop sound risk management solutions with their insurance broker.

Using the Experts vs Doing it Yourself

While some business owners opt to do it themselves by working with a direct insurer, the process can be confusing and leave you with inadequate cover that doesn't reimburse you for all you might be entitled to.

New technology tools, such as Xero’s new network is good news for Rothbury clients who use the accounting software.  Client’s financials will be more accurate, meaning a well tailored solution can be put in place.  It's also likely the information will help with quicker resolutions at claims time. Getting adequate cover for business interruption and other risks will be les time and labour intensive - letting business owners focus on what’s most important.