A fire has closed the business. Creditors still want payment.
The premises are closed and payment notices keep arriving
A workshop fire leaves a cabinetmaker unable to use its machines. Customers are waiting for orders, rent and finance payments are approaching, and the insurer has begun assessing the loss. The owner expects insurance to help but does not know when money might be received. The immediate financial response needs to work with that uncertainty rather than promise creditors an assumed payout.
Start with safety and authorised access
Follow emergency-service and site-control directions before anyone returns. Obtain advice about securing the premises and preserving evidence. Business.gov.au’s emergency planning guidance puts safety ahead of restoring operations.
Nominate a contact for the insurer, landlord and key service providers. Keep a factual incident record and copies of instructions received. Do not discard damaged property or begin major repair commitments without checking what the insurer and relevant authorities require.
Source: Business.gov.au — Develop an emergency management plan
Build a claim file that also helps the business plan
Gather policy details, asset records, purchase evidence, photographs already available and current job information. Ask the insurer or broker which losses and costs need separate documentation. Keep expenses caused by the interruption identifiable in the accounts.
Do not assume every damaged item or lost receipt is covered. Confirm relevant terms, exclusions, excesses and any business-interruption cover with the appropriate professional. Distinguish an amount submitted in a claim from an accepted amount and a confirmed payment date.
Identify the bills and receipts affected
List wages, rent, finance, supplier commitments and the cost of a safe temporary operating arrangement. Review contracts and employment obligations with suitable advisers rather than assuming closure ends them. Some commitments may be negotiable; others may require a different response.
Remove delayed customer receipts from the dates previously forecast. Add only funds with a reliable basis and show an insurance payment separately until confirmed. Calculate the gap for a limited recovery period and identify the commitments that need attention first.
Choose a recovery step the cash can support
Compare repairing, relocating temporarily or reducing operations while the claim progresses. Include transport, installation, deposits and the time needed to resume useful work. A replacement machine does not restore income if the site, power or approvals are unavailable.
Provide creditors with a factual proposal and a review date, keeping written confirmation of any concessions. If the available cash cannot cover ongoing debts, seek qualified insolvency advice alongside the insurance response. Waiting for a claim decision does not resolve the immediate trading position.
Prepare one recovery and creditor file
Confirm safe access and claim requirements, then document the affected assets and jobs.
Calculate the continuing commitments and compare a limited recovery plan without assuming an insurance payment date.
Call CRP today about business debt and cash pressure following a serious interruption.