Why you need business interruption insurance.
Business owners are charged with securing the right commercial insurance to keep their companies safe. While most business owners recognize the importance of having general liability, commercial property, and workers compensation insurance, they often overlook business interruption coverage. Here’s why you cannot afford to skip this essential type of business insurance.
- What is Business Interruption Insurance?
Business interruption insurance covers a portion of a business’s lost revenue if it is forced to shut its doors temporarily. In addition to paying a portion of this lost capital, business interruption insurance also offers businesses financial support to pay for recurring expenses such as rent, utility bills, and employee paychecks.
- When Does This Insurance Kick In?
Business interruption insurance coverage kicks in whenever a covered peril causes damage to your business’s physical building or the supplies and equipment that is necessary to complete normal operations. Common business interruption situations include fire, flood, vandalism, theft, extreme weather events, and so on.
- Is This Coverage Mandatory?
While business interruption insurance is highly recommended, it is not legally required. However, keep in mind that failing to secure this protection could leave your business vulnerable. If you do not have enough money saved to cover the cost of a business interruption, then a temporary closure could become a permanent one. Securing the right business interruption insurance ensures that this scenario does not become a reality for your company.
This is what you need to know about business interruption insurance. Are you ready to secure the right commercial coverage to keep your company safe? If so, then contact us at Gant Insurance Agency. We are ready to assist you with all your business insurance needs today.