Fergusons Insurance Brokers

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39B Davey St Frankston, Victoria
Phone: (613) 9783-3200

Choosing a Business Interruption Insurance Indemnity Period

Business Interruption Insurance protects your business income in the event that a major loss such as fire, flood, storm or the like disrupts your business income and for maximum protection it is very important that the correct indemnity period is selected.

The indemnity period governs how long you will be paid for your loss of income, from the time of loss until full income generation is returned to pre-loss figures.

In arriving at the correct indemnity period some things to consider are:

  • If your building was completely destroyed or severely damaged how long would it take to rebuild and recommence trading (bear in mind – site clearance, architects, plans being drawn up and planning permission).

  • How long would it take to replace Machinery & Plant items that were destroyed. Specialised machinery would need to be rebuilt and on occasions ordered and sourced from overseas.

  • If your business is seasonal how long would it take to replace stock?

Bearing in mind some of the above points the Indemnity Period selected may need to be anywhere between 12 to 36months and in some cases even longer.

The correct Indemnity Period for your business should be discussed with your dedicated Account Manager.