What can you do to ensure you have the right insurance to keep your business trading? QueenslandÍs leasing and franchising business, Lease1 has some suggestions.

It advises that the risks may not be clearly understood without going through policies in detail. For instance, the loss of profits clause will be specific to gross, operating or net profits.

ñThere is a big difference and could easily break your business if not dealt with correctly,î says Phil Chapman, director of Lease1.

How a franchisee deals with wages and other expenses during a claim period can be critical, he adds.

Lease1 advises that you check your insurance cover for the following:

• Loss of property _ full replacement value on loss or damage of property named under the lease, including fitout, equipment, stock and chattels but also shopfront, ceilings, floor coverings, services supply
• Loss of profits _ will this be loss of    gross or operating profit or net profit?

Check your lease for these points:

• Tenants insurance _ does the industrial special risk, global or blanket policy after public liability include tenantÍs loss of property and loss of profits?
• Shopping centre damage _ what is the demolition clause in the lease? If the centre is damaged it may be possible to terminate the lease