Help protect your livelihood with our Business Interruption cover
Mark Vlaminckx (pictured), Chief Financial and Operations Officer at specialist farm insurer Achmea explains how our business interruption cover can help you get back on track if something unexpected happens.
“At Achmea, we believe farmers cannot afford to be over or under-insured. Insurance is one of the most important aspects of a business, yet under-insurance is one of the biggest risks.
As a farmer, there are many types of insurance covers to consider. When it comes to safeguarding your business continuity, Business Interruption cover is key.
When something happens, you want peace of mind and certainty that you can continue with your business. Recently, we have seen several significant catastrophic weather events and what we often see is that for various reasons, it can take longer than expected to rebuild.
Someone could have insured their assets adequately, but if they have not protected their business continuity, and taken into consideration the time it takes to rebuild and resume normal operations, it could be detrimental for a business.
With all insurance covers, there is an additional premium involved for this optional cover, but if something happens and the physical rebuild is going to take several months and you don’t have an income during this time, your Business Interruption cover can not only provide extra peace of mind – it can help protect your livelihood.
It takes both time and effort to rebuild
Having worked for the Achmea Group in the Netherlands for the last two decades and now in Australia for the last two years, I have seen first-hand the devastating impacts of catastrophic events and other unexpected losses.
Several years ago, in June 2016, the Netherlands experienced one of the biggest hailstorm events with hailstones the size of tennis balls. What we saw was major destruction, causing 600 million euros damage to the sector.
With a hailstorm this big, there is only so much you can do to prepare as a farmer.
The lesson learnt from this hailstorm, and other recent damaging events in Australia, including the catastrophic bushfires, is that it takes both time and effort to rebuild.
When there is a catastrophic event, building equipment and labour are often in high demand. These factors can delay the rebuild of your house and/or packing sheds for example. During this time, you may be unable to operate your business as you otherwise would, and you may not receive any or your full income. Business Interruption cover can help to cover the cost of these losses.
We speak regularly with farmers about the challenges and often the time delays associated with getting farms back up and running after a loss event. Farmers are always keen to understand how quickly they could get back into business. In our experience, it pays to take a long-term approach to this.
Protecting your livelihood and those who work for you should form a central part of your business continuity considerations
This is important to consider if you also have people working for you. Irrespective if this is 5 or 30 people, if something happens to the business, you will still have your fixed costs to pay, this includes paying those employed by you.
Insurance exists to protect you should something unexpected occur, reducing risk related to your income and protecting your livelihood and those who work for you, and it should form a central part of your business continuity considerations.
If you cannot afford to be out of business for an extended period of time, please contact your local Achmea Risk Specialist to discuss your requirements.
The information in this article is general advice only and does not take into account your individual objectives, financial situation or needs (your personal circumstances). Before using this information to decide whether to purchase the insurance policy, you should consider your personal circumstances and the relevant Product Disclosure Statement available from the ‘Downloads’ section of our website www.achmea.com.au.
Achmea Schadeverzekeringen N.V. ABN 86 158 237 702 AFSL 433984.