Insurance Council of Australia

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What do I need to provide to make a Business Interruption claim?

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What do I need to provide to make a Business Interruption claim?

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Many businesses may have Business Interruption (BI) cover in their business insurance policies.  Each policy varies according to the business, but in general BI is designed to cover a loss of profit while a business cannot operate due to certain insured events, for example the closure of premises by a public authority. 

Your broker or insurer will be able to advise you whether you have a BI policy and if so, whether it may cover the losses you have incurred while your business was closed. If you do have a BI claim you will have to submit financial documentation to evidence the financial loss your business has suffered. In most instances, the product disclosure statement (PDS) that was provided to you when you bought the policy outlines the information which your insurer needs to assess a BI claim. 

The Insurance Council of Australia has collated the list set out below to assist BI policyholders when making a claim. This list provides a general outline of the documents and information required to submit a BI claim.  

As each claim is different insurers may also require additional or different information, depending on factors such as the period of time that a business has been impacted, the nature of the business and the type of loss suffered. In particular you should be prepared to provide financial information not just for the last year but for previous years. 

If you consider that you may have a BI claim it is important to start gathering the relevant financial information as soon as possible. Putting this information together when it is at hand will assist the claims process and help your insurer establish BI losses. Your broker or insurer can also help you identify the documents and information you need to collate. 

Documents required 

  • Historical BAS Lodgements with ATO receipts for the last year to verify the gross profit.  
  • Historical Financial Year Profit and Loss Statements including detailed trading account summary for the last year. You may be able to produce this from a Management Information System used for bookkeeping such as MYOB, QuickBooks or Xero.  
  • If available Historical Quarterly Profit and Loss Statements for the last year. 
  • If available Historical Monthly Profit and Loss Statements for the last year. 
  • If necessary and available Historical weekly trading figures.  
  • Evidence of payroll costs (in the event that your policy covers payroll). 
  • Copy of any correspondence between the Insured/Landlord regarding the waiver, deferment or abatement of any rent during the interruption period. 
  • Lease Agreement (if applicable) 
  • Franchise Agreement (if applicable) 

Information required 

  • Provide details of when your business was closed and why. 
  • Provide details of your business' normal daily/weekly trading hours. 
  • Provide details of whether your business was ordered to close or to alter its operations by a government authority (such as the Police) or Local Council.  
  • Provide details of whether your business was able to operate even in a reduced capacity. 
  • Provide details of any government grants or other financial support received. 

 

Useful links

Insurance explained
Reduce your risk
icon Fact Sheet: Making a BI Claim
icon www.moneysmart.gov.au

Safety measures for e-scooter and e-bike owners

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Safety measures for e-scooter and e-bike owners

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What are the risks?

The widespread adoption of e-scooters and e-bikes has revolutionised urban mobility, offering convenient, environmentally friendly, and often cost-effective alternative to traditional transportation.

However, these devices also carry risks, including the potential for fire caused by lithium-ion batteries.

While most insurance policies do not exclude fires cause by lithium-ion batteries, we are seeing now too regularly fires caused by owners who are careless using, charging, and storing their devices, resulting in serious injuries and damaging assets.

What can you do to reduce your risk?

There are proactive measures e-scooter and e-bike owners can take to ensure they are adequately protected, including:

  1. Review insurance coverage: Ensure insurance policy provides sufficient coverage to rebuild or replace the home and contents in the event of a fire. Consider the rising cost of building materials and adjust coverage accordingly. 
  2. Store and recharge safely: Improper storage or e-scooters and e-bikes pose a fire hazard and may lead to an insurance claim being denied. Store these devices in a well-ventilated area away from flammable materials, and avoid charging them indoors.
  3. Check building regulations: Some apartment buildings or body corporates may impose specific insurance requirements for e-scooter or e-bike owners to have a higher level of insurance coverage. It’s important to have these conversation with your strata committee or landlord before the unexpected happens.

Time to take action

The growing popularity of e-scooters and e-bikes underscores the need for users to be aware of the potential risks and implement safety measures.

Owners and landlords must ensure they have adequate insurance coverage to safeguard against unforeseen incidents.

Want to read more?

You can read more on managing fire risk from electrified transport in residential buildings here. 

Useful links

Insurance explained
Reduce your risk
Calculators
icon Managing fire risk from electrified transport in residential buildings
icon www.moneysmart.gov.au

What to expect from the insurance recovery and claims process

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Insurance recovery and claims process

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After disaster hits

Commence claim

First step is contacting your insurer and you can do this, even if you don’t know the full-extent of damage.

Make safe 

If your property has been damaged, your insurer will arrange emergency works as soon as it is safe to do so to minimise any hazards and prevent further damage. This can include removing loose debris, isolating damaged solar panels or electrical circuits and installing a roof tarp.

Assessing the damage

An insurance assessor (or claims adjuster) will inspect the damage to your property. Specialist reports may be required to determine aspects of your claim, for example Hydrologists may be required to determine the cause of water inundation and Engineers may be required to consider any structural damage.

Claim decision

This is a key claim milestone where your Insurer will confirm what you are covered for.  The nature of a claim will determine how long it takes to make a claim decision, for example where specialist reports are required the decision process will generally take longer 

Scope of Work (or Statement of Work)

The Scope of Work is the written report that sets out the repair or rebuild work to be performed and end products that are expected to be used. It’s important to read the report and let your insurer know if changes are required. The initial scope of works may need to be reassessed after repairs have started or if further damage is uncovered – and that is ok, revision of the scope of works is a normal part of the process.

Repair / replace or cash settlement

Repair or replace 

Once your Scope of Work has been agreed, it’s time to repair or replace the damaged property. If your insurer is managing the repair/rebuild, they will appoint a builder, arrange the contracts and notify you of the construction schedule. Your insurer will also manage local council approvals as required.

Cash settlement

Alternatively, you may take a cash settlement to manage the repair or rebuilding work yourself. It’s important that you comply with council regulations and buildings codes, as well as using a licensed builder. If you fail to do this, your home may not be insurable in the future.

Feedback / complaints

If you are unhappy with the handling of your insurance claim, you can lodge a complaint with your insurer. Your insurer has a dedicated dispute resolution process to resolve your concerns. And as AFCA will highlight, if you need further assistance, you can contact the Australian Financial Complaints Authority.

Useful links

Code of Practice
Cyclones
Current catastrophes
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What to do if your property has been impacted by severe storm

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What to do if your property has been impacted by severe storm?

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Safety is the priority

  • Safety is the priority - don’t do anything that puts anyone at risk.
  • If you were directed to evacuate your property, only return to your property when emergency
    services give the go ahead.
  • If water has entered the property, don't turn on the electricity until it has been inspected by an
    electrician.
  • Do not drive your vehicle if it has suffered water damage

Contact your insurer

  •  Contact your insurance company as soon as possible to lodge a claim and seek guidance on the claims process.
  • Let your insurer know if you've sustained roof damage.
  • Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing, as unauthorised work may not be covered by your policy.
  • Do not be concerned if you can’t find your insurance papers. Insurers have electronic records and need only your name, address and date of birth.
  • If you are in urgent financial need you can ask your insurer to fast track your claim and make an advance payment within five business days of you demonstrating your urgent financial need. Any advance payment may be deducted from the total value of your claim.

Yes you can clean up but check these tips first

  • Remain mindful of safety.
  • Before you start your clean-up take photos or video of damage to your property and contents / possessions to support your claim. 
  • Remove any water damaged items from the property that may pose a health risk such as soft furnishings and carpet. Take photos or keep small samples of water damaged items to support your insurance claim.
  • Don’t throw away items that could be repaired, unless they pose a health risk.
  • Make a list of damaged items, including the brand, model and serial number if you can.
  • Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing, as unauthorised work may not be covered by your policy.

Useful links

Code of Practice
Help in disasters
icon Printable Fact Sheet: Claims Process
icon Printable Fact Sheet: Clean Up
icon www.moneysmart.gov.au

Support is available

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Support is available

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During and in the aftermath of a catastrophe, your safety and wellbeing is paramount and there are resources available to support you.

Disaster recovery

Free legal advice: Legal Aid in your state

Useful links

Help in disasters
Complaints
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Prioritise your safety & wellbeing

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Your insurer can help you

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Additional support is available

Buying insurance before an event

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When to buy insurance

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Buying a policy before an event

Some types of insurance may benefit you if they are bought in advance, such as travel insurance. Travel insurance may be purchased as soon as the deposit for the trip is paid. It usually does not cost any more to purchase the cover at this time, and the cancellation cover can start straight away.

Embargoes

Insurers often place embargoes on insurance policies to prevent people buying insurance when the risks are elevated or a disaster is approaching and then cancelling cover after the risk passes. 

Embargoes on insurance are a normal and accepted practice, and usually apply to new policies. They take effect when events such as fires, floods and cyclones are impacting or considered likely to impact an area. 

If an insured risk is imminent, the probability of that risk occurring and therefore a claim being lodged is high. Insurers would need to calculate a premium that reflects this elevated risk, rather than averaging the risk over an entire year.

However, not all insurers impose embargoes. Australia’s insurance market is large and highly competitive, and at any one time there are usually insurers who have not enacted an embargo, and property owners may be able to find cover.

Useful links

Premiums Explained
Reduce Your Risk
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