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JUNE 2022 | FIND MANNINGHAM
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Business Interruption – AICOW (Additional Increased Cost of Working)
GENERAL INSURANCE By Craig Anderson
Additional increases in cost of working which arise during a period of interruption to a business, can be covered under a business pack policy. The cost of removal and relocation of stock and equipment after a shop is storm damaged for example, is additional to normal operating costs. As it is a necessary expense incurred as a result of an insured occurrence, costs may be covered if the AICOW option is selected. An appropriate sum insured, and time period also need to be selected. Hire costs for emergency shuttering or hoardings, generator hire, or even temporary security patrol costs, to name a few items which may be covered. Many business owners are well versed in the main Business Interruption section of their policy, and realise they are reliant on their location for passing trade. Even a temporary relocation due to a fire or
storm may cause a plunge in revenue, and so they are keen to cover their gross profit or gross revenue depending on which option is best. Due to the tendency to often overlook the AICOW costs which may be incurred as a result of a total or partial loss, the client could suffer financially. The default level of cover offered in your average business pack is usually only $25k for a year, and can be increased to meet your needs. If your business premises could take 2 years to rebuild after a total loss, and it is necessary to relocate until the replacement building is completed, you will need to allow an adequate sum to refit other premises to meet your needs. Remember that there will be time spent on planning applications, building permits, possible problems with re-zoning, and construction delays with bad weather or supply of materials or trades. We all imagine that if the premises we rely on for our living are destroyed, that they will be back in a year; however this
is very rarely ever the case. In fact, 2 years can be too short a period depending on size, type, location, and complexity of the building. The simple solution is to sit down with your broker and examine your position carefully; it may just save you a load of money and heartache. For a health check of your business insurance, contact Small Business Insurance Brokers via email: sales@ smallbusinessinsurancebrokers.com.au Any advice in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, before acting on the above advice, you should consider its appropriateness (having regard to your objectives, needs and financial situation).
Craig Anderson GENERAL INSURANCE Small Business Insurance Brokers www. heightsafetyinsurancebrokers.com.au 0418 300 096
Stolen generations payments in Vic: ATO factsheet By Warren Strybosch
The ATO has published a fact sheet on the tax treatment of lump sums paid by the Victorian Government under the Stolen Generations Reparations Package and Stolen Generations Funeral Fund. The ATO says such payments by the Victorian Government to a Stolen Generations member are not taxable. Accordingly, these payments do not need to be shown in the tax return for a Stolen Generations member because they are not taxable. JUNE 2022 | FIND MANNINGHAM
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