Yes—business interruption insurance can pay ongoing business costs when an insured event interrupts the business, with a fire that damages business property as the practical example. It is continuity cover for the electrician’s disrupted operations, not a payment for damage or injury caused to a third party. Figures checked 1 October 2026 against business.gov.au’s Types of business insurance.
This is general information, not financial or legal advice. Check the regulator information relevant to your jurisdiction and the policy’s Product Disclosure Statement (PDS) before relying on any cover.
What does business interruption insurance pay after a fire?
Business interruption insurance pays ongoing business costs when an insured event interrupts the business. In the fire example, the relevant loss is the effect of the interruption on the business, rather than simply the cost of repairing fire-damaged property.
For an electrician, the practical question is which costs would remain while normal operations are disrupted. The cited government guidance does not identify particular expenses, lost revenue or a standard payment duration, so the policy’s PDS must be checked rather than assuming every bill or interrupted job is covered.
How is it different from property and public liability insurance?
Business interruption, property and liability insurance answer different questions:
| Type of insurance | What it addresses | Connection to the fire example |
|---|---|---|
| Business interruption insurance | Ongoing business costs when an insured event interrupts the business | May respond when a fire interrupts operations |
| Building and contents insurance | Damage or loss to the building or contents from events including fire | May address covered physical damage from a fire |
| Public liability insurance | Death, injury or property damage to another person when caused by negligence | Addresses third-party harm or damage, not the electrician’s continuity costs |
A fire may therefore raise questions under more than one policy, but one cover should not be assumed to answer all of them. Check the relevant sections of the PDS for the event, interruption, covered costs and any applicable conditions.
Does “ongoing costs” mean unlimited cover?
No. “Ongoing business costs” does not mean that cover is unlimited or automatic. The business.gov.au guidance gives no standard payment amount or duration, and it does not specify which individual costs are included.
The PDS is therefore the right place to check:
- which ongoing costs the policy covers;
- whether lost revenue is addressed;
- any stated benefit limits;
- how long cover can respond; and
- any exclusions, conditions or time requirements.
If those details are unclear, discuss them with a licenced insurance broker, insurer or business adviser before relying on the policy.
Is business interruption insurance compulsory for electricians?
The cited guidance does not state that business interruption insurance is compulsory for every Australian electrician. It says legal requirements depend on the type of business. It also notes that some states and territories may require public liability insurance for certain occupations, while customers, contractors or other businesses you deal with may require particular insurance.
Check the relevant state or territory regulator information, client contracts and the policy PDS rather than assuming either that the cover is compulsory or that it is unnecessary.
What should an electrician check before buying?
- The insured event: Is fire covered under the relevant policy section?
- The interruption: What connection between the fire and the business interruption does the policy recognise?
- The ongoing costs: Which expenses are included, and which are excluded?
- The payment period: How long can the policy respond after the interruption?
- Other insurance: Check whether separate building, contents, stock, equipment or liability cover is needed.
- Advice and verification: Talk to a licenced insurance broker, insurer or business adviser. An authorised general insurer can be found on the Australian Prudential Regulation Authority’s register, while an insurance broker’s licence can be checked on the Australian Securities and Investments Commission’s professional register.
Sources
FAQ
Does business interruption insurance cover fire damage?
It may pay ongoing business costs when a fire is an insured event and interrupts the business. Covered physical damage or loss is handled separately by the relevant property insurance, so check both policy sections.
Which ongoing costs are covered?
The cited government guidance refers generally to ongoing business costs but does not list particular expenses. Check the PDS for the covered costs, exclusions, limits and payment period.
Does business interruption insurance replace public liability insurance?
No. Business interruption insurance supports the business after an insured interruption. Public liability insurance responds to liability for third-party death, injury or property damage caused by negligence.
Do all electricians need business interruption insurance?
The cited guidance does not identify it as compulsory for every electrician. Requirements may depend on the business, jurisdiction and contracts, so check the relevant regulator information and PDS.
Partner links. Using them costs you nothing extra and may earn us a commission.