When setting up a medical practice, most professionals wouldn’t dream of going without insurance for fire, flood, or storm damage. But while property insurance covers the physical damage, it doesn’t protect what many practices rely on most - income.
A recent survey by CGU Insurance found that 1 in 4 businesses wouldn’t survive a three-month closure. That figure increases to 38% if the disruption happens during a business’s peak season. It’s a sobering reminder that disruptions don’t just impact operations, they threaten the very sustainability of your business.
That’s where Business Interruption insurance steps up to the plate. This type of cover can be the difference between a temporary setback and a permanent closure. It helps cover ongoing expenses and income loss while you recover from an unexpected event, ensuring you can survive the disruption and rebuild stronger.
What does Business Interruption insurance cover?
Business Interruption insurance can provide cover for:
- Loss of income due to temporary closure or reduced capacity
- Relocation costs if you need to move to a temporary or new premises
- Ongoing operating expenses like rent, electricity, and loan repayments
- Wages so you can continue paying staff during the closure
- Additional costs incurred to minimise the interruption or resume operations sooner
This type of cover is particularly relevant for medical practices, where continuity of care is important and your patient’s trust is hard-earned. Being able to get back on your feet quickly after a major event means you can retain your team, support your patients, and reduce the risk of long-term business damage.
Understanding Your Risk
Imagine if some unforeseen event forces you to close your practice doors, the financial impact could be major, even if it’s just a few weeks. Rent, wages, utilities, equipment leasing, and supplier payments don’t stop just because your income does. And in the meantime, your patients could get desperate and seek care somewhere else, leading to longer-term impacts on your client base and reputation.
Before you can protect your practice, you need to know where the cracks might be. Business Interruption insurance isn’t one-size-fits-all. The right cover depends on your size, services, location and how your practice is set up.
In today’s climate, it’s not just clinical risks you need to plan for. It’s about thinking bigger, protecting your operations, income, and long-term resilience.
Talk to an advisor who understands medical businesses and can guide you through the cover you need to stay protected, no matter what comes your way. Contact us on 1800 988 522 or email imed@cutcher.com.au.
Andrew is the Director of Cutcher & Neale’s General Insurance division. He has been an advisor in the industry for over 20 years ensuring his clients have the best value and personalised coverage possible.
Andrew has worked in many areas of insurance, including domestic and international brokering. His specialties cover personal and business insurance, medical professionals, residential and commercial real estate, sports, and construction.
