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Business Interruption Insurance - Businesses need to operate.

Business Insurance to protect your business

There will be times when that seems to be an impossible task.

While your business may be on solid footing and able to keep going, other businesses you partner with may not be so lucky.

When they stop sending you raw materials, etc., you need Business interruption insurance.


Business interruption insurance can step in and keep your business on solid ground when your operations are stopped due to unforeseen circumstances. It is a way to protect yourself, your reputation, and your employees when others have troubles they cannot control.


What is Business interruption insurance?

Over the years, you may have developed a keen business mind that tries to prepare for any possible situation that affects your business. However, that may not always be possible, as unforeseen chains of events can harm your business operation without notice.

What Business interruption insurance does for you is protect you from those emergencies that make running your business impossible. These situations are basically impossible to control.

Business interruption insurance covers issues like an essential supplier closing its doors, floods, storm damage, fires, and so on. When these situations arise, you can rest your mind because you have the foresight to buy this insurance coverage.

Business interruption insurance helps protect your reputation and your company when your business can’t function.


What Business interruption insurance covers


Each policy will not be the same. Different insurance companies have their own list of situations they will or will not cover. Make sure you understand the exclusion lists before you sign.


Here is what the insurance can cover for you:

  • Revenue- the lost revenue that takes place because your business cannot open

  • Temporary relocation- the costs involved when you have to move out of your facilities temporarily

  • Fixed costs- based on previously fixed costs your business has paid in the past.

  • Extra expenses are those new costs you must pay to keep your business up and running. These go beyond the fixed costs your business has to pay

  • Civil authority closure- when your business has to close because of a government directive


What businesses need Business interruption insurance?


Suppose you own a business with a physical storefront or have a business that relies on receiving manufactured goods or supplies from 1 or 2 distributors. In that case, you should invest in business interruption insurance.


The reason for this broad application is that natural disasters can strike anytime. When they do, your business may not be able to meet expenses as well as wages.


Also, commercial property insurance only covers physical damage to your property and the things inside your buildings. It does nothing for lost wages and revenue, etc. If your business falls under that definition, then you need to look into acquiring some business interruption insurance.


This insurance cover ensures you can quickly get your business back up and on its feet.


Some final words


Business is as big a risk as it can get. There are so many things that can go wrong when you open your doors. That is why having good Business interruption insurance is essential to your overall operations.


To find the right Business interruption insurance cover, just call our brokerage firm today. Our insurance brokers will be happy to show you all the top options for this type of coverage to you.


Then, all you do is pick the best cover for your business and budget. Call today for your free consultation. It may be the best investment of your business’s money you have ever spent.





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