Mother Nature isn’t too concerned with your business. Unexpected things can happen at any time. Luckily, you can protect all your hard work with Business Interruption Insurance. Don’t let Mother Nature dictate if your business doors will open again. Take control with a Business Interruption Policy.
According to the Insurance Institute for Business & Home Safety, more than 25 percent of businesses that close after a disaster never reopen. Why is this? This happens because these operations failed to prepare for when their business' operations are interrupted.
Business Interruption Insurance protects your business when a disaster strikes or an unexpected situation forces you to close up shop. Common disasters that could interrupt your operation include:
A tornado ripped through your town with ferocity. You were aware that your company isn't located in "Tornado Alley" – it's not even close. With this knowledge, you decided not invest in any disaster coverage. Your logic for this decision was that one of your other insurances would cover a catastrophe. This thinking was flawed.
Lost profits, fixed costs, temporary location expenses, and more were not covered. Now, you are not sure if you can keep the company afloat until business returns to normal.
If you are a business owner and have dreamed of passing your business to your children, you must prepare for the worst-case scenario. Always be proactive, not reactive.
All business owners need to have Business Interruption Insurance, but some need it more than others. If your business is located in a historically extreme weather location, then you know what the weather can do. No matter how confident you are in your insurance portfolio, Business Interruption Insurance offers peace of mind and total coverage when disasters occur.
Think about the potential costs of having to close your doors for an extended time. This means paying employees who aren’t working, destroyed products, lost profits, temporary location costs, and fixed costs, among others.
Business Interruption Insurance, also called Business Income Insurance, is coverage designed for when a company needs to close its doors after a disaster or unexpected circumstances. This coverage is also useful to unlucky businesses when the city closes their street for major road construction.
Typical costs covered:
Although Business Interruption Insurance is a solid policy, it was not designed to cover everything. Items not covered include:
Costs for Business Interruption Coverage vary due to business size, nature of the business, amount of coverage, and how it is classified by the insurance company. The insurance industry has thousands of classification codes, and every business falls into one of these.
For example, a large business in "Tornado Alley" may need a policy that costs $10,000. A small business located in an area unlikely to be struck by a natural disaster may only pay $750 for a policy. However, the national average cost for Business Interruption Insurance is $1,200 annually.
Some insurance coverages can be intimidating or confusing. Business Interruption Insurance doesn’t need to be. If you are a business owner, consider this policy for peace of mind. This coverage offers relief when disaster strikes, a time when companies need it most.
Prices range from $750 to $10,000 and also vary depending on your zipcode: