Are you Really Protected?

Are you Really Protected?

Loss or damage to assets such as buildings and equipment can cause financial hardship to any business.

What you need to know about Business Interruption

Given the high cost and dependence on workshop equipment, most automotive based businesses buy risk protection to safe-guard the various assets of their business. There are however, a number of automotive businesses that neglect to protect their income.

Loss or damage to your property or the property of a supplier, which is caused by a protected risk such as fire or storm,* can cause substantial interruption to your business, until the required repair or replacement is completed. This can impact productivity, resulting in a reduction in turnover, leading to a loss of profits.

Following a protected risk, your business may not be trading or producing any income as a result of your loss, but it will still incur fixed costs such as rent, taxes, wages and power bills. At the same time, there may be the additional requirements of renting temporary premises and paying overtime to staff to ensure work is completed and deadlines are met.

These factors combined can put a huge amount of pressure on your business at a time when cash flow may be limited.

Business Interruption protection can provide for this loss in business income and profit during repair or replacement. Business Interruption can cover both the continuing and emergency costs faced by the business, as well as the loss of income arising from an enforced shutdown as a result of unforeseen circumstances such as fire or storm.*

Capricorn Risk Services offers Members protection that is specifically tailored to the automotive trade and the potential risk exposures faced by your business. Capricorn Members can consolidate all their risk protection and insurance needs through Capricorn while still earning Capricorn Reward Points.

Contact your Capricorn Risk Account Manager for more information on Business Interruption protection, or to find out how Capricorn Risk Services can assist in updating your current risk protection.

Visit Capricorn Business Protection for more information.

*For a full list of risks protected please see Protect Against Risk.

Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) include discretionary risk protection and general insurance products. Discretionary risk protection is issued out of Australia by Capricorn Mutual Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. General insurance products are issued by a range of insurers and in Australia are brokered through Capricorn Insurance Services Pty Ltd.  In New Zealand they are available through Capricorn Risk Services Pty Ltd as a member broker of PSC Connect NZ Limited. Capricorn Risk Services Pty Ltd is a registered financial services provider (390446) and a corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).

This article was published 20/07/2020 and the content is current as at the date of publication.