|Firstly, for any claim to be paid as a result of loss of turnover, the business must have business interruption insurance. Unfortunately, many Australian businesses operate without business interruption insurance. Business interruption insurance covers the shortfall in gross profits caused by the interruption to the business from any insured events. It also helps pay ongoing costs and protects profit margins until the business is back on its feet and at the same profit level before the interruption.
Secondly, although a business may have this cover in place, in some instances, some policies might exclude claims made if the utility (electricity, gas, water supply systems, or land based telecommunications) is not immediately adjacent to the insured premises.
Thirdly, even when your insurance does cover you for utilities not adjacent to the insured premises, there is generally an excess period of 48 hours.
This means in an outage such as the one in South Australia, you would only be covered if a business was without power for more than 48 hours. For example some of the businesses who were without power for seven days, would only be able to claim for five days loss of gross profits.