As a commercial landlord, your rental income is important. The last thing you need is to find yourself without that income, for whatever reason. Imagine your property is severely damaged by a flood, and your tenants are temporarily relieved from paying rent. How do you navigate your rental income when it’s not coming in? 

That’s where Business Interruption Insurance is vital. It is designed to protect your income and cash flow in the event of emergencies, when you are unable to access your rental income. So, when you need a safety net for the unforeseen circumstances that can impact your rental income, you’ll need to consider business interruption insurance. 

Morgan Insurance is dedicated to ensuring you understand your insurance policy and how it will protect you. So, let’s break it down. 

What Is Business Interruption Insurance?

It provides financial stability and protection when operations are disrupted due to a range of events, including fire, storms, and other catastrophes that cause physical damage to a property. When these damages are made, it often means that the business cannot proceed as normal, especially when the property becomes uninhabitable. 

Business interruption insurance covers the loss of income caused by the events, which helps you maintain your financial stability until your property is recovered. A typical coverage will protect: 

• Lost profits, which are determined by previous performance rates
• Fixed costs (i.e. rent, wages, utility costs)
• Additional expenses, such as temporary relocation costs, replacement equipment rent costs and any additional labour fees. 
• Taxes
• Civil authority coverage, which is the losses incurred if authorities order a shutdown or restrict access to the property. 

As a commercial landlord, your business interruption insurance will usually be an extension of your commercial property insurance. Your property insurance will usually protect the physical element of your property, whereas business interruption insurance protects your income in the face of serious events and damage. 

What Does It Not Cover?

A good insurance policy is tailored to your specific needs. However, there are general exclusions to business interruption insurance, which means the policy may not cover you. This includes, but is not limited to, the following: 

• Flood or earthquake damage
• Income that is undocumented in business records
• Pandemic and virus impact
• Business insolvency or discontinuation
• Terrorism damage

Your Guide To Understanding Your Policy 

Navigating your business interruption insurance policy doesn’t need to be complicated when you have a broker like Morgan Insurance by your side to ensure that every aspect of your cover is clear. So, here’s what you need to know and understand about your policy. 

Conditions of Your Policy

There will be specific guidelines and conditions to your policy that outline your responsibility as the party who is insured. For instance, it is your duty as a commercial landlord to maintain safety measures and report changes accordingly, so that if you need to claim on your insurance, it is clear that every measure has been followed. 

Coverage Details

It is important to be clear on what your coverage will protect and what is excluded. This ensures that if you need to claim on your insurance, there are no surprises, and you’re prepared for what will be included in your financial coverage.

Declarations

This is the first section of your policy and details basic information, including your name, address and insurer details, coverage dates and limits. Any changes must be reported so that your policy is updated and you’re clear on the terms and limitations of your coverage.

The truth is, it’s all in the details of your insurance policy. It is easy to miss information, which can cause issues when trying to claim on your cover. With Morgan Insurance, you can navigate your insurance policy coverage details and claims with confidence and clarity. 

How We Help

At Morgan Insurance, our priority is to provide you with clear information and guidance on everything to do with your insurance policy. From start to finish, we can help secure an insurance policy that is suited to your needs, review your current policy, and help you make a claim when the time comes. 

Our team of brokers are experts, so they can clarify the terms of your policy, negotiate a better one, analyse any potential risks and limits to your coverage and manage your claims process for successful outcomes. 

It can be overwhelming trying to understand and navigate your business interruption insurance alone as a commercial landlord. We allow you to focus that time and energy on running your properties, and we’ll handle the rest. 

Morgan Insurance: Your Insurance Partners

We partner with landlords across Australia to manage their insurance solutions with confidence and expertise. Understanding your policy and its terms is essential to ensuring you’re prepared in the event of a catastrophe that damages your property. 

Business interruption insurance can protect you financially, and Morgan Insurance are your broker who will help you access the safety you need, when you need it. 

Start with us today.