Business interruption insurance can help replace lost gross profit and some ongoing expenses when insured physical damage (such as a Brisbane storm, flood or fire) disrupts trading. It may help keep rent, wages and loan repayments moving while you repair, relocate or rebuild, subject to policy terms, limits and waiting periods.
Get your quote here and now. Whether you are protecting your Brisbane home, managing a Queensland investment property or running a business vehicle, now is a good time to review your cover. Use the quote option that applies to you:
General business cover can be requested through the general business cover form.
Why Brisbane businesses should check interruption cover before storm season
Queensland storm season is commonly treated as running from November to April. For Brisbane businesses, the practical risks include hail, intense rain, damaging winds, fallen trees, bushfire embers and localised flooding. A storm may damage your premises directly, or force a closure because the surrounding area is unsafe or inaccessible.
The Brisbane River catchment has a long flood history. Businesses in suburbs along the river and creek corridors, as well as low-lying commercial areas, can face different levels of flood exposure. A postcode alone may not tell the full story: the location, building, water flow and policy wording all matter.
Power outages can disrupt refrigeration, machinery, payment systems and communications. But a power cut by itself may not trigger business interruption cover. Check whether your policy requires insured physical damage and whether it includes an extension for interruption to utilities or prevention of access.
A Brisbane business interruption insurance guide explains the cover in more detail. For broader cover considerations, see Business Insurance Brisbane.
What business interruption insurance may help pay
Business interruption insurance, sometimes called business income insurance, may help with the financial effect of an insured event that stops or reduces your trading. Depending on the policy, it can cover lost gross profit, some ongoing expenses and reasonable extra costs to keep operating or resume trading.
For a cafe, that might mean help with continuing expenses after insured storm damage makes the kitchen unusable. A retailer might need temporary premises while repairs are underway. A tradie or light-industrial business could face delays while damaged equipment or stock is replaced.
The cover generally needs to connect to insured damage, and the policy’s exclusions and extensions are important. Flood may be treated differently from rainwater runoff or storm surge. Don’t assume that every type of water damage is covered just because the policy mentions storm or flood.
A commercial property insurance review can help you check how property cover and interruption cover fit together. They are related, but one does not automatically guarantee the other will respond.
Gross profit and the indemnity period: two figures to get right
Business interruption cover is usually based on gross profit, not simply total turnover. In plain English, the policy’s gross profit definition usually starts with sales and takes account of costs that stop or reduce when trading stops. The wording sets the actual calculation.
The sum insured needs to reflect the amount of gross profit that could be affected during the selected indemnity period. That period is the maximum time the policy may cover a loss after insured damage, subject to its terms. It is not necessarily the time you expect to be closed.
For example, if the annual insured gross profit figure is $600,000 and you choose an 18-month indemnity period, a basic starting calculation would be $900,000. The right figure may need adjustment for growth, seasonal trading, inflation and the policy’s calculation method.
Twelve months may be enough for some businesses. But a major flood or storm can mean lengthy repairs, delays sourcing specialist equipment and time needed to win customers back. Consider whether 18 or 24 months is more realistic for your premises and operations.
Also check how wages are treated. Some policies provide cover for wages for a set period or at a percentage, rather than covering all wages for the full indemnity period.
Lease terms and closures beyond your front door
A shopping-centre or landlord closure can affect trading even when your own premises have not suffered damage. Whether business interruption cover responds may depend on the reason for the closure and whether your wording includes an extension for prevention of access or damage to nearby property.
Tenants should check their lease for what happens when premises are unusable. Rent and other obligations may continue, pause or change depending on the agreement. Business interruption cover does not automatically cancel lease obligations, and it may not cover every payment owed while a site is closed.
Landlords and tenants should each consider their own financial exposure. A landlord may rely on rent to meet loan repayments and property expenses, while a tenant may still face wages, rent, supplier bills and loan commitments. Make sure your insurance arrangements reflect your role and your contract.
What to check on your business interruption cover before storm season
Bookmark this checklist for your next cover review:
- Sum insured basis: Is the figure based on the policy’s gross profit definition and the full indemnity period?
- Indemnity period: Would you have enough time to repair, replace equipment and rebuild customer demand?
- Gross profit definition: Which costs are deducted, and does the calculation reflect how your business trades?
- Wage cover percentage: How much of payroll is covered, and for how long?
- Dependencies and suppliers: Could cover respond if an important supplier or customer is affected by insured damage?
- Sub-limits: Are there lower limits for utilities, prevention of access, temporary relocation or other extensions?
- Waiting period: How long must an interruption last before cover may begin?
Keep financial records, supplier details, stock information and equipment records backed up and accessible. Have a simple plan for staff communication, alternative suppliers and temporary ways to serve customers. If a loss occurs, take reasonable steps to prevent further damage, record what happened and notify Business Insurance Consulting promptly. The claims information page outlines practical first steps.
If you want to check whether your current cover reflects your premises, lease and recovery needs, Business Insurance Consulting can help you review your business cover.
Related Brisbane cover to consider
Business interruption is one part of a wider risk plan. An Insurance Broker Brisbane can help review how different types of cover fit your operations.
For example, Commercial Insurance Brisbane arrangements may include property and income protection, while Property Management Insurance Brisbane and Real Estate Insurance Brisbane businesses should consider how an interruption could affect services, rent and tenants. Professional Indemnity Insurance Brisbane relates to claims about advice or services; Public Liability Insurance Brisbane relates to certain third-party injury or property damage claims. Cyber Insurance Brisbane may address some losses following a cyber incident, subject to its own terms. For interruption after insured physical damage, check Commercial Property Insurance Brisbane alongside your business interruption wording. For help with a claim, Claims Assistance Insurance Broker Brisbane support can help you understand the next steps.
Business interruption insurance Brisbane: frequently asked questions
What does business interruption insurance cost in Brisbane?
There is no single Brisbane average. Premiums depend on your industry, gross profit sum insured, premises and location, selected indemnity period, excess, waiting period and the cover extensions you choose. Some broad Australian examples suggest typical annual ranges of about $300–$2,000 for the business-interruption component for certain small office, retail and hospitality profiles. These are indicative ranges only, not Brisbane-specific quotes; flood exposure and higher limits can affect the price.
Is business interruption cover included in a business pack?
It may be available as part of a business insurance package, but don’t assume it is included. Check your schedule and policy wording for the section, limits, waiting period, indemnity period and any selected extensions. Business Insurance Consulting can help you review how the cover is arranged.
Do landlords and tenants need business interruption insurance?
Either may have an income or expense exposure if a property becomes unusable, but their needs differ. A tenant may still have rent and payroll obligations; a landlord may depend on rental income. Lease terms and policy wording matter, so check both rather than assuming one party’s cover protects the other.
How long should the indemnity period be?
It depends on how long it could take to repair or replace property, restore operations and recover customers. Twelve months may suit some businesses, while 18 or 24 months may be worth considering where major repairs, specialist equipment or flood exposure could extend recovery. Discuss the likely timeline for your specific business before choosing.
Review your cover before a closure happens
What would be the hardest expense for your business to manage if you had to close for several months: rent, wages, repayments or something else? Share your thoughts in the comments.
For a practical review of your Brisbane business interruption cover, contact Business Insurance Consulting on 0412 212 099 or email craig@businco.com.au. Visit businessinsuranceconsulting.com.au to learn more.
Business Insurance Consulting Pty Ltd ABN 18 646 168 096 CAR No: 1278410, Authorised Representative of Community Broker Network – AFSL 233750.
Disclaimer: This info is general advice only and doesn't consider your personal goals or financial situation. Before making a decision, please read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD).
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