You plan, strategize, and agonize over your business in an effort to get it to run smoothly. You have great employees for your business and your profits are growing from all your hard work. Then a freak fire, flood or some other claim strikes and you are forced to close for repairs. Does your commercial insurance have Business Interruption as part of your protection plan?
Having the proper Business Interruption Insurance for your business means you can stay in business even if you make no sales during the restoration of your commercial property.
How does it work?
Business Interruption insurance supports you when you cannot operate as a result of a covered loss. Things like blackouts and extended power outages, fire, a disaster at one of your key suppliers, expenses from establishing a temporary location and more can create havoc on your bottom line. Your expenses, unfortunately, do not stop when you cannot earn money.
To combat the effects of an insured disaster striking your business sound Business Interruption insurance will help with covering your expenses for things like taxes, employee wages, and other utility expenses as well as protecting your business income.
While your business is recovering you face serious challenges such as losing key employees, vulnerability to competition, loss of clientele, lost income and reduced earning capacity. Business interruption insurance helps to lessen the impact of a claim on these areas of your business.
Here’s how to lessen a claim’s impact on your business.
Accounting – Keep your bookkeeping as current as possible. This way if something happens you can send your insurance company the most up-to-date financials to help determine your coverage needs.
Contingencies for Suppliers – What if a key supplier of yours has an issue and can’t deliver the product you need. This will affect your ability to operate effectively. Have a list of other supplies handy in case one of your regular suppliers has issues.
Disaster Planning – Can you develop a different method of operation of your business in a claim situation? Having a disaster plan means you can adapt to a major claim easier. Can employees work from home? Can operations be easily moved elsewhere while repairs are undertaken? Are all your files and data secured and backed-up? Create a claim response strategy to address each area of your business.
Want to know more about what business interruption insurance is best for your business? Contact us here.
Want a second opinion on your commercial insurance? Visit our commercial insurance page here.
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