Additional Increased Cost of Working

Are you a business owner? Has your business ever been forced to close due to an unforeseen event preventing you from trading? What would your customers do if this occurred?


The issue many businesses have to face once they have closed their doors and reopened is competing for customers to return. This isn't easy, and is often expensive. In a worst-case scenario, the customers may not return. 

Thankfully we have you covered. There is insurance that can assist you in these difficult times and it is, of course optional. This coverage will allow you to make immediate decisions following an insured event to protect your business, allowing you to meet customer needs in alternative ways while dealing with major business disruptions.

This optional cover is called “Additional Increased Cost of Working” and could make a large difference when trying to ensure that customers stay with you following a major event.

Why purchase this cover if it is optional?

In the event of an incident that causes major, unforeseen disruptions to your business, this type of insurance will assist in funding additional costs to get you back on track and operating again. The purpose of this insurance is to enable a business to incur costs and expenses that will mitigate a loss of revenue.

How does it work?

The “Additional Increased Cost of Working” is an extension that allows you to claim reasonable costs required to maintain business operations and services following an insured event. It removes the economic limit applicable under the “Increased Cost of Working” section of a business interruption policy. In comparison, this cost covers the loss of revenue that your business may suffer.

Examples of what this cover may provide includes:

  • Additional rent for temporary premises.
  • Outsourcing of manufacture to a competitor or contract manufacturer.
  • The hire of temporary equipment.
  • Overtime payment to staff.
  • An advertising campaign to win back lost or dissatisfied customers.
  • The temporary employment of additional staff.

Overall, this type of insurance coverage allows you to make quick, on the spot decisions when your business is put to a standstill. The expenses, however, need to be prudent and reasonable, keeping in mind this can only be incurred as a result of the damage or event that caused business disruptions. 

Contact us today

If you would like to know more about this optional cover, call us today on 1300 305 834 or enquire via our website contact form.

Cover is subject to the policy terms, conditions, and exclusions.

This information is general in nature. To read our general advice warning click here.

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