Home / Property + Business Interruption

Your fit-out gets paid out.
What about the two months you're closed?

Q: I rent my shop and the landlord has fire insurance — do I still need my own cover?

The landlord's fire insurance covers the building's structure — not your fit-out, furniture, or stock, which are entirely your responsibility as the tenant. And your lost income while closed certainly won't be covered by the landlord's policy either.

Q: How is the Business Interruption coverage amount calculated?

The base figure is your gross profit (not revenue) multiplied by the indemnity period, plus any fixed costs you still have to pay while closed. Using the wrong base (net profit or revenue instead of gross profit) is a common mistake — it's worth having someone calculate this properly for you.

Fire, a burst pipe, a typhoon — property insurance generally covers the loss of your fit-out and stock. What's easy to miss is the time you're closed: zero revenue, while rent, payroll, and supplier payments keep coming due. Property and Business Interruption (BI) insurance work as a pair — we'll walk you through buying both properly.

Two policies — what does each one actually do?

	Property Insurance (All Risks)	Business Interruption Insurance
What it pays	Physical loss — fit-out, furniture and equipment, stock, computers	Financial loss during closure — lost gross profit, ongoing costs (rent/payroll), temporary relocation expenses
Commonly covered risks	Fire, lightning, explosion, typhoon, flood, burst pipes, theft (all-risks policies generally follow "covered unless excluded")	Tied to the property policy — only pays if the closure is caused by an event the property policy covers (the "material damage proviso")
Consequence of not buying	You bear the cost of refitting and restocking yourself	The most common cause of business closure isn't a fire — it's a cash-flow collapse during the closure period

BI insurance can't be bought on its own

Business Interruption insurance must be attached to a property policy — if the property policy doesn't cover the event, BI won't pay out either. So exactly what your property policy covers directly determines whether you get paid when you're forced to close. This is the single most common buying mistake.

Four traps SMEs most commonly fall into

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Coverage below replacement cost

Your fit-out was worth $800k three years ago; redoing it today costs $1.2m — if the policy value wasn't updated, a claim can be reduced proportionally under the "average clause" for under-insurance.

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Stock fluctuation not declared

Your warehouse is packed during peak season, but the coverage amount is still based on the low season. Businesses with large stock swings should discuss a fluctuating-declaration arrangement with their broker.

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BI indemnity period set too short

The "indemnity period" caps how long BI will pay out. Between refit scheduling, restocking, and getting licences back, a full reopening often takes 9 to 12 months — but many policies are only set at 3 to 6 months.

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Assuming every unit is covered for flooding

Low-lying floors, basements, and light-well units carry higher flood risk, and insurers may exclude it or attach conditions. Read the exclusions carefully before signing.

Which businesses need this most?

✓ High priority

Physical premises with fit-out investment — restaurants, retail, beauty, fitness
Businesses holding stock — wholesale, e-commerce warehousing, pharmacies
Companies with valuable equipment — clinics, studios, factories
Single-location operations — no backup site means closure is total closure

△ Lower priority

Fully remote operations with no physical assets
Shared workspace users with minimal owned assets (though still check your lease for requirements)
Computer-dominated asset base — a cheaper named-items policy may be worth considering

Property + BI FAQ

I rent my shop and the landlord has fire insurance — do I still need my own cover?

The landlord's fire insurance covers the building's structure — not your fit-out, furniture, or stock, which are entirely your responsibility as the tenant. And your lost income while closed certainly won't be covered by the landlord's policy either.

Are typhoon losses covered?

Property all-risks policies generally cover losses from typhoons and rainstorms, but watch the excess — natural-disaster items usually carry a higher excess than other categories, and low-lying or exposed locations may have additional conditions attached. Ask before you buy.

How is the Business Interruption coverage amount calculated?

The base figure is your gross profit (not revenue) multiplied by the indemnity period, plus any fixed costs you still have to pay while closed. Using the wrong base (net profit or revenue instead of gross profit) is a common mistake — it's worth having someone calculate this properly for you.

Your shop's assets deserve a proper baseline.

We'll work out your fit-out and stock replacement cost and BI coverage for free — at least you'll know whether you're currently covered enough.

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