Business Interruption Insurance Guide
No one ever plans for a disaster to occur, but when it does, business interruption insurance can help your company get back on its feet. This guide will tell you everything you need to know about business interruption insurance, including what it covers and how to make a claim. So if you’re wondering if this type of insurance is right for your business, keep reading!
1. What is business interruption insurance, and why is it important?
Business interruption insurance is a type of insurance that provides coverage in the event that your business is forced to close or suspend operations due to a covered disaster. This can include events like fires, hurricanes, earthquakes, and even pandemics.
While no one ever wants to think about their business being interrupted, it’s important to have this type of coverage in place in case the worst does happen. Business interruption insurance can help you cover lost revenue and expenses incurred while your business is closed, which can mean the difference between surviving a disaster and going under.
2. What does business interruption insurance cover?
Business interruption insurance typically covers three main areas: lost revenue, extra expenses, and employee salaries.
Flood
If you have to close your business due to a flood, business interruption insurance can help you cover the lost revenue that you would have otherwise earned. This can be a huge help in keeping your business afloat while you’re closed for repairs.
Fire
When a fire ravages your business, you not only lose revenue while you’re closed, but you also incur extra expenses for things like temporary relocation and repairs. Business interruption insurance can help cover both lost revenue and extra expenses, giving you one less thing to worry about during a difficult time.
Storm
During a storm, your business may lose power or sustain damage. Business interruption insurance can help cover the cost of lost revenue as well as any extra expenses you incur, like the cost of renting generators.
3. What to do in the event of a business interruption
If your business is forced to close due to a covered disaster, the first thing you should do is contact your insurance company. You will need to file a claim and provide documentation of the damage or loss that occurred.
Once your claim is filed, your insurance company will send an adjuster to assess the damage and determine the amount of coverage you are eligible for. This process can take some time, so it’s important to be patient.
In the meantime, you should start working on getting your business back up and running. This may involve making repairs, relocating temporarily, or hiring new staff. Once your business is up and running again, you can begin to rebuild and hopefully emerge from the disaster even stronger than before.
4. The importance of having business interruption insurance
No one ever wants to think about their business being interrupted, but it’s important to have this type of coverage in place in case the worst does happen. Business interruption insurance can help you cover lost revenue and expenses incurred while your business is closed, which can mean the difference between surviving a disaster and going under.
If you don’t have business interruption insurance and your business is forced to close, you may have to rely on savings or loans to get through the tough times. This can be a difficult burden to bear, and it may even put your business at risk of failing.
So if you’re thinking about getting business interruption insurance, be sure to speak with your insurance agent about what coverage options are available. It could be the best decision you ever make for your business.
5. How to choose the right policy for your business
When choosing business interruption insurance, it’s important to work with an experienced agent who can help you determine the right coverage for your needs. You’ll want to consider the size of your business, the types of disasters that are most likely to occur in your area, and the amount of coverage you’ll need to protect your business.
It’s also important to remember that business interruption insurance is not a one-size-fits-all solution. You may need to purchase additional coverage to protect your business from certain types of disasters. Be sure to discuss all of your options with your agent to make sure you’re getting the best possible coverage for your business.
If you’re not sure where to start, we can help. We provide a free, no-obligatory quote comparison service that can help you compare business interruption insurance policies from a variety of leading insurers.