Business Interruption Insurance

Redwood Insurance Brokers makes business interruption insurance clear and genuinely useful. We help protect your cashflow if you cannot trade after an insured event, explain the key settings that make or break a claim (indemnity period, gross profit calculation, and waiting periods), and make sure the numbers stack up in real life. If you ever need to claim, we back you and help drive it through.

Why business interruption insurance matters

When an event disrupts your business, the biggest cost is often lost trading, not physical damage. Rent, wages, loan payments, and supplier costs do not pause just because your doors are closed.

Business interruption (BI) insurance is designed to help replace income and support ongoing expenses while you recover, subject to the policy trigger, limits, and wording. Our job is to structure BI properly so it works when you actually need it.

What we help with:

We can help you organise BI cover that fits how your business earns money, including:

  • BI linked to your business assets or material damage policy (common structure)

  • Gross profit or revenue basis that reflects how you actually trade

  • Ongoing expenses such as wages, rent, and finance costs (policy dependent)

  • Indemnity period selection (how long the policy can respond after a loss)

  • Increased cost of working options where you can spend to keep operating (where available)

  • Additional benefits, depending on insurer and industry, such as accountant fees, claims preparation costs, and prevention of access extensions

We talk through what you can do remotely, what would stop you from trading, and how long recovery would realistically take.

book Free review

The key BI question: how long would it take you to recover?

BI cover is often won or lost on the indemnity period, which is the time the policy can respond while you recover.

A common mistake is picking three to six months because it “sounds fine,” only for real life to take over. Repairs take longer, equipment is delayed, consents drag, staff move on, or you reopen at reduced capacity for longer than expected.

Plain-English takeaway: you are insuring time. We help you choose an indemnity period based on realistic recovery, not optimism.

The gaps we look for (so you don’t find them mid-claim)

This is where a broker earns their keep. We check for:

  • Indemnity period too short (the most common BI issue)

  • The wrong gross profit basis, so the numbers do not match how you earn

  • Underinsurance caused by outdated financials or growth not reflected in sums insured

  • Waiting periods (time excesses) that delay when BI payments can start

  • Trigger confusion where BI requires material damage from an insured event to activate

  • Supplier and customer dependency (single points of failure) not considered

  • Seasonality where timing of the loss matters more than the averages

  • Extra expenses not covered unless structured properly, such as temporary premises, outsourcing, and expedited freight

If there is a gap, we will tell you straight and explain the practical options.

Business assets vs business interruption (different jobs)

  • Business assets insurance helps replace or repair physical things, such as stock, equipment, and fit-out.

  • Business interruption insurance helps protect income and cashflow while you recover.

Plain-English takeaway: assets replace stuff. BI keeps the business alive while you rebuild.

How Redwood does it differently

Independent

We compare options across insurers and recommend the best match for your business.

Advice, not just a quote

We explain BI in plain English, including what is required for the cover to respond.

A sharper risk lens

We stress-test downtime scenarios and cashflow pressure points.

Claims advocacy

If you need to claim, we help present the claim clearly and keep the momentum.

Fast-moving

You deal with people who can make progress, not a maze of hand-offs.

Our process (simple, on purpose)

  1. Quick chat: how you make money, what would stop you trading, and how you would recover

  2. Review: your current BI structure and numbers (or start fresh)

  3. Recommendations: clear options with differences in indemnity period, values, waiting periods, and extensions

  4. Placement: we organise the policy and confirm key details

  5. Ongoing support: updates, renewals, and claims help

If you need to claim

When disruption hits, you need support, not a spreadsheet fight.

We help you:

  • Confirm what triggers BI cover and what evidence is needed

  • Lodge and progress the claim

  • Present financial information clearly and consistently

  • Coordinate with the insurer, loss adjusters, and accountants

  • Push for a fair and timely outcome

FAQ’s

  • If a disruption would hurt your ability to pay wages, rent, or suppliers, BI is worth considering. We’ll help you assess it realistically.

  • It is the maximum period your BI policy can respond while you recover after an insured event. Choosing the right length is critical.

  • Usually not. BI generally responds to defined insured events and policy wording. We’ll explain what your policy does and does not cover.

  • Not always. Many policies have waiting periods (time excesses) before payments can start.

  • Often yes. Many BI policies require material damage from an insured event to trigger cover, though extensions vary.

  • No. We help sole traders through to larger businesses. This page is focused on BI insurance advice in NZ.

Want a free second opinion on your BI insurance?


Bring your current policy (or just tell us what you want covered). We’ll review it, explain what matters, and show you options.

Free insurance review