The optional cover B2C's need to know about

b2c insurance


What would your customers do if your business was forced to close today because of an insured event and you couldn’t resume trading for say six weeks? The answer most possibly would be that your customers would likely move to a competitor.

The problem here is that when you eventually resume trading you will need to win your customers back. This may not be easy and could prove expensive. In a worst-case scenario, they may not come back to you at all. Thankfully there is an optional extension to your business insurance cover that will enable you to make immediate decisions following an insured event to protect your business. It means you’ll be able to use other ways to meet your customers’ needs while dealing with major business disruptions.




This optional cover is called the ‘Additional Increased Cost of Working’ and it could make all the difference when trying to ensure your customers stay with you following a major event. The end goal being that when you resume normal trading, you move seamlessly back to where you were before. It’s this optional cover that Abe Tavares, Commercial Broking Manager of our Sydney office recommends to pretty much any business with a customer base.  

“If you’ve got customers, you should consider this cover. Regardless of what hits you, it means you’ve got the resources at your disposal to temporarily continue business elsewhere, add extra shifts, add some additional staff to catch-up, notify your customers of a change of arrangements – essentially to ensure you are able to continue to service your customers somehow while you deal with the problem.”

So how does it work? The ‘Additional Increased Cost of Working’ extension allows you to claim any reasonable increase in costs of working required to maintain your 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. Which in comparison covers costs up to the loss of revenue that would occur if the costs were not paid and is a much broader cover as a result.


Fire disruption


‘Additional Increased Cost of Working’ allows you to make quicker decisions as you don’t need to justify the expense before incurring it – the expense just needs to be prudent and reasonable and be incurred as a result of the damage or event – and it can continue to help when you resume normal trading to get your business back where it was before.

This money can be claimed for:

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

Abe says “the Additional Increased Cost of Working extension can be a business lifeline when a major event hits. It enables you to set up somewhere else quickly, plug in and press play pretty much straight away. It’s an integral part of protecting your business – and in some cases, it can be the most valuable aspect of Business Interruption insurance a business can take.”


Power disruption


“It’s not a particularly expensive cover to add either. The cost is equivalent to a ‘fire’ rating, and while no one wants to add insurance they don’t need, it’s hard to see how any business with a customer base and a reasonable turnover wouldn’t benefit from including it.”


If you would like to know more about ‘Additional Increased Cost of Working’ or have any questions, don’t hesitate to contact us today on 1300 305 834 or email





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