top of page

Ensuring Correct Business Interruption Cover - David's Cautionary Story

When David's factory suffered an electrical fire last year, he assumed his business interruption insurance would keep operations running. However, major gaps in his policies left him catastrophically exposed, ultimately forcing him to shut down after being in business for over 15 years.


David admits he delegated too much responsibility to his long-time insurance broker, trusting they ensured adequate and up-to-date cover. As David focused intensely on growing his business, his insurance broker failed to conduct regular policy reviews to match David's rapid growth.


When the blaze halted production for months on end, David found his maximum business interruption payout was woefully low - capped based on outdated figures from many years prior.


Cashflow dried up, talent moved on and customers fled to competitors over the long downtime period. Attempts to get back on his feet post-fire never gained traction and having spent tens of thousands of his own money, David lost his livelihood.


Now, closing the company's doors for good, David reflects painfully on what he could have done differently. He now realises that the buck stopped with him - he must validate that their insurance broker proactively manages cover, year after year.


For business owners intensely focused on daily operations, you must also scrutinise if your insurance cover will truly save you when disaster strikes. David learned this lesson too late - don't let business interruption sink your investment and livelihood. Receive quality insurance advice today.




bottom of page