Recent catastrophe affects business owner’s income

Many believe that concrete and steel will survive a fire, but this picture proves otherwise. The steel beams that support the roof have buckled in the heat allowing the walls to fall inward. The slab will also have to be demolished and re-laid and it could be 6 months or longer before the tenants can return.

In this circumstance, the business interruption option available as part of a business insurance package would replace the income of the tenant while repairs are in progress.

Statistics tell us that 2 out of 3 businesses who suffer such damage either fail to reopen, or close within 12 months of reopening. The main cause of failure is cited as lack of cash flow.

Unfortunately this business interruption option is often refused by tenants.