Business Interruption Insurance Explained – Benefits & Coverages
People care deeply about their businesses, and when something happens that threatens to put a stop to its daily operations, you’ll want to handle that as quickly as possible. Discover how business interruption insurance can be a crucial advantage for any entrepreneur. In this post, we’ll walk you through the benefits and coverage options for this type of policy—or you can simply request a quote.
What Is Business Interruption Insurance?
Business interruption insurance is designed to be a reliable financial solution to potential problems that may impact the ongoing operation of your business. These policies can provide your organization with financial support at your most vulnerable moments.
If you’re unsure of your insurance needs, schedule a consultation with one of our agents, who can walk you through your coverage options.
Do You Need It?
Did you know that 25% of businesses never recover when hit with a natural disaster? It’s true that different businesses may be at varying degrees of risk for a disaster or incident. However, it’s important for every business to consider what risks are most likely for their location. For example—are you in an area where hurricanes, earthquakes, or other natural disasters are prevalent? These considerations will give you a better idea of your need for business interruption insurance.
Regardless of the location or size of your business, it’s vital to understand that accidents and unforeseen events can happen. When they do, they can grind your company’s operations to a halt. This can mean missing customer orders, losing products, an absent workforce or any number of other challenges.
What Exactly Is Covered?
The exact items covered under a business interruption insurance policy will often vary depending on your specific needs. Here are some examples of how this coverage can be priceless when you need it most:
- Paying important expenses, like rent. Arguably the most important piece of hardware to consider for any business is the location itself. Clients and customers expect you to be there, but some events can make it so you can’t pay your lease. If you have business interruption insurance, however, you’ll won’t have to worry about losing your facility in an emergency.
- Covering employee wages. Unexpected disasters can cause your business operations to stop for weeks at a time. During this time, even your most loyal employees are going to expect to be paid. Not being able to meet their demands may cause them to look elsewhere. Business interruption coverage can ensure that your team is paid as expected.
- Fronting revenue money. Most businesses depend on receiving a certain amount of revenue on a daily basis. This revenue may be used to buy new product, pay vital expenses, and give vendors money that was promised to them. Vendors and others may not be forgiving if you’re late with a payment. Business interruption coverage guarantees that you’ll never have to be.
- Fees associated with relocation. In the event that you have to move to a new temporary location until your facility is rebuilt or repaired, a business interruption policy can help you with these expenses, allowing you to open your doors again as soon as possible.
Worth The Investment?
When deciding if it is worth paying for business interruption insurance, it helps to weigh the premium against the cost of recovering from a devastating event. For example, some may feel that $200 per month is too much, but what will that cost be when your business has suffered a flood and you need help pay employees who are threatening to leave? Since it helps you avoid these difficult, unforeseen situations, business interruption coverage is almost always a wise investment.
Request A Quote Today
Whichever type of business insurance is most appropriate for you, we have you covered at King Street Agency. Whether you run a corporate branch of a major company that everyone’s heard of or a local auto shop or restaurant, a business interruption policy can keep you up and running in the face of disaster.
Don’t risk letting business slow to a dead stop. Request a quote from King Street Agency today.
