Most people wouldn’t even consider opening a practice without insurance against damage from fire or storms, so it makes sense to invest in business interruption insurance cover as well.
Despite the fact that it’s often overlooked, business interruption insurance can be vital to ensuring your medical practice survives during tough times. Unless you have a significant amount of cash and can afford to fund the recovery of your practice, this type of insurance can help your practice rebuild to its full strength after a major event.
There are so many different circumstances which can interrupt your practice, and the time taken to resume normal trading can cause significant financial damage. Wages, rent, and utilities still need to be paid, and you may need to rebuild or even move premises, and all the while you could be losing out to your competitors.
Resuming your practice as quickly as possible after a disaster is essential, and business interruption insurance is the best tool available to help you maintain your company’s financial position in difficult circumstances.
A recent survey by CGU Insurance found that one in four businesses would not survive if they had to close their doors for three months.
The survey also found that a quarter of small businesses would have to shut down if they experienced a business disruption such as a major fire or storm, and this figure jumped to 38% if the disruption happened during a busy period in the year for that business.
Realistically, any business interruption could be a major setback for a small business, particularly in the current economic climate, where the complexity of running medical practices is already difficult enough.
What is Covered?
- Loss of income
- Relocation costs
- Operating Expenses
- Closure of Business
- Continuation of payroll.
The first step to ensuring your medical practiced is fully protected is to understand your risks. iMed Insurance can help you assess what insurance your practice has, and what other covers you need to make sure you’re protected.
The material contained in this article is in the nature of general comment only, and neither purports, nor is intended to be advice on any particular matter. Persons should not act or rely upon any information contained in or implied by this article without seeking appropriate professional advice which relates specifically to his/her particular circumstances. Cutcher & Neale expressly disclaim all and any liability to any person, whether a client of Cutcher & Neale or not, who acts or fails to act as a consequence of reliance upon the whole or any part of this article.
iMed Insurance is a Corporate Authorised Representative of Insurance Advisernet Australia Pty Ltd.
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