Insurance excess or uninsured loss: funding the gap before the claim pays

A storm takes the roof off the workshop. A break-in empties the tool trailer. A burst pipe floods the shopfront. The insurance is there for exactly this — but the insurer’s timeline and your timeline are rarely the same. The excess is due now, repairs need to start now, and some of what was lost may not be covered at all.

This page is about funding the gap between the event and the claim, so the business keeps trading.

What do you actually need to fund?

Usually not the whole loss. There are three different pieces:

1. The excess — the amount you contribute per claim, set out in your policy.
2. Uninsured or underinsured items — things the policy doesn’t cover, or covers for less than replacement cost.
3. The timing gap — repairs, replacement stock and wages that must be paid before the claim is settled.

The first two are permanent costs. The third is a timing gap that the claim eventually repays. It’s worth separating them, because they suit different kinds of funding: the permanent part should be repaid from trading over a sensible period, while the timing part can be cleared in one go when the insurer pays.

What does business.gov.au suggest?

Its insurance guidance covers a few points that matter here:

• Read the product disclosure statement (PDS), which explains cover, exclusions, excess amounts and your obligations.
• Make claims promptly, with incident details and supporting documents, and check claim timeframes.
• Review asset values regularly — insurance contracts don’t usually compensate for depreciation or a change in market value.
• If you disagree with a claim decision, contact the Australian Financial Complaints Authority after using the insurer’s own process.

Its emergency management pages also cover what to do during and after a disaster, including where to find assistance.

What’s realistic by timeline?

How urgent	Realistic options	Notes
Today	Smaller unsecured amounts, same day possible; $20k – $250k possible same day with property	For urgent repairs or make-safe work
This week	Unsecured cash-flow funding, typically $5k – $500k	Sized on turnover and bank statements
Larger rebuild	Property-secured, $20k – $5m; up to $5m possible within 24–48 hours	Suits major damage with a long claim

When you know the excess and the repair quotes, start the enquiry or ring 1300 752 188.

What to have ready when you call

• The claim number and any correspondence from the insurer
• The excess amount and what the insurer has said is or isn’t covered
• Repair or replacement quotes, with lead times
• Photos and a short description of what happened
• Business bank statements — and if trading has dropped since the event, say so
• The expected claim timeline, so the timing gap can be sized

See proof of the deadline for how to present claim documents and quotes clearly.

How do you stop the gap growing?

• Lodge the claim immediately and keep a log of every call and email.
• Ask about interim payments. Some insurers will pay part of a claim early for urgent repairs or stock.
• Check business interruption cover if you have it — it may cover lost profit, but usually has its own waiting period.
• Keep trading where you can, even partly. Revenue during the gap reduces what you need to fund.
• Don’t fund the whole claim. Borrow the excess, the uninsured items and a conservative timing gap.

Should repairs wait for the assessor?

Ask your insurer before you commit to major work. Insurers often want to inspect damage or approve quotes before repairs start, and starting too early can complicate a claim. Make-safe work — tarping a roof, securing a broken door, pumping out water — is different; it’s usually expected straight away to stop further damage. Photograph everything before and after, keep receipts, and tell the insurer what you’ve done. If the assessor is slow to visit, put your request for an inspection date in writing, because every day the doors stay shut is a day of lost trading you may not be able to claim.

An illustrative storm loss

Illustrative example only. A hardware store’s roof is damaged in a summer storm. Water ruins about $70k of stock and the shop closes for four days. The policy excess is $5k, the roof repair quote is $38k, and the insurer expects to finalise the stock claim in six to eight weeks.

The owner funds the excess, the roof repair and replacement stock with an unsecured facility so the shop can reopen within a week. When the claim pays, most of the facility is repaid; the excess and a few uninsured items are repaid from trading over the following months.

How do you size the funding?

Add the excess, the uninsured items and the repairs or stock you have to pay for before the claim settles. Then subtract anything the insurer will pay as an interim amount and whatever the business can carry from trading. What’s left — plus a modest buffer — is the figure to fund.

Keep trading while the claim runs

The worst outcome after an insured event is losing the business while waiting for the payout. Asking the Deadline Desk what’s possible won’t put a credit check on your file. We don’t hand your details around to a stack of lenders; one team reads your claim situation and a real person calls you back.

Please fill in the enquiry form accurately — the excess, the quotes and the expected claim timing — so we can match you to funding that bridges the gap without over-borrowing. Or ring 1300 752 188.