Imagine waking up tomorrow to find your business or farm unable to operate due to a fire, flood, or equipment breakdown. Would you still be able to pay your bills, wages, or suppliers? For many small businesses and farmers, the answer is no—and that’s where business interruption insurance can make all the difference.
In rural areas like Horsham and throughout regional Victoria, we know how quickly life can change. That’s why understanding your exposure to the risk of business interruption—and the solutions available—is a key part of protecting what you’ve built.
What is business interruption insurance?
Business interruption insurance (also called business income insurance) is designed to cover the loss of income a business suffers after a disaster. This isn’t about the physical damage to property—that’s covered by your property insurance. Business interruption is designed to cover the financial impact of being unable to trade while you recover.
For example:
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A farm shed burns down, halting your ability to store or transport harvested grain.
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A machinery breakdown puts your operation on hold during a crucial production window.
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A major storm damages your premises, and you have to close for weeks while repairs are done.
In each of these cases, your fixed costs continue, but your income stops. That’s the gap business interruption insurance can help to fill.
What does it cover?
Policies differ, but typical business interruption insurance may include:
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Loss of gross profit or income
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Ongoing operating expenses (like rent, utilities, wages)
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Relocation costs (if you need to operate from another site)
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Additional costs incurred to reduce the impact of the interruption
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Recovery periods beyond the repair time—helping your business rebuild its customer base
It’s not just for retail shops or offices—farms, trades, and small manufacturers can benefit from this cover, too.
Common risks for regional businesses and farmers
Many rural and regional business owners are exposed to risks that can stop them from operating—often without warning. These include:
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Natural disasters: bushfires, storms, floods
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Theft or vandalism: especially if operating in isolated locations
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Equipment breakdown: particularly for farms or workshops relying on machinery
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Supply chain disruption: if your business relies on certain materials or goods
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Power outages: affecting perishables or production timelines
While some risks can be reduced, not everything can be predicted. That’s where risk transfer—through insurance—comes in.
Risk mitigation: It starts with a plan
Insurance is just one part of the puzzle. You can also take steps to reduce your exposure, such as:
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Installing fire detection and suppression systems
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Keeping equipment well-maintained and regularly serviced
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Having a business continuity plan that outlines how you would respond to a major interruption
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Storing important documents offsite or in the cloud
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Conducting regular risk assessments with the help of an insurance adviser
The role of insurance
Business interruption insurance won’t prevent disasters—but it can prevent financial ruin in the aftermath. It’s designed to help you survive the period when your business is most vulnerable, providing the funds you need to keep your business going while you get back on your feet.
Many small business owners and farmers overlook this cover—until they need it. And by then, it’s too late.
Need help understanding your options?
At Western General Insurance, we understand the unique challenges faced by small business owners and farmers in regional Victoria. We can help you assess your risks and identify the right insurance solutions to help protect your livelihood – contact us here.
General Advice Warning
The information in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. You should consider whether the information is appropriate for you and consult a qualified insurance adviser before making any decisions regarding insurance products.