We're heading into fire season and as usual, the weather can bring about a number of surprises. As a business owner, it is a wise decision to take a serious look at what business interruption insurance can provide, how you'll plan for circumstances that could affect your business' operation, and your ability to survive business interruption loss.
When people go into business, they don't think twice about business insurance coverage to cover the damages and losses due to theft, fire, hail or other acts of nature. But if a building is burned down, a roof is lost to a tornado, or a restaurant is under four feet of water, it can no longer generate revenue and will suffer business loss. All operations are at a standstill until the repairs can be done, which could take weeks or even months.
Quite simply: interruption insurance can save a business. Your business.
The Value of Business Interruption Insurance
Business interruption coverage can be added to your existing property insurance policy or may be included in a business package policy.
Operating Expenses – Even though the doors of operation are closed, your business will still incur operating expenses, such as utilities. This is covered.
Lost Income – In the event your company has to close its doors and vacate while repairs are being completed, interruption insurance covers the profits your company would have earned during that time.
What To Know When Shopping for Business Interruption Insurance
Prices Vary – Depending on the type of business you operate, a policy for interruption insurance could be higher in relation to fire coverage if you run a restaurant or cafe, which have a greater risk of fire versus a clothing store. You can always shop for business insurance quotes online, so keep this in mind when you're comparing quotes.
Policy Limits – When comparing business insurance quotes, take a look at the policy limits to ensure they last more than a few days. As with most construction projects, delays happen. So it can take longer than anticipated for repairs to be completed.
Waiting Period – Be aware that some policies require a 48–hour waiting period before the insurance kicks in. So if your business operates seven days a week, you should be prepared for that business loss that will be incurred.
When it comes to the insurance needs of a new business, or reviewing an existing property insurance policy for a company that's been around a while, including business interruption insurance in the plan can provide a life raft that keep your business afloat during the hard times.
Learn more about business insurance from NetQuote – get your free business insurance quotes today.
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