Time to Think About Business Interruption Insurance

After the record snowfall in New England this winter, it’s easy to see how natural disasters and other events can get in the way of conducting business. Extremely poor weather, downed power lines, building destruction and supplier interruptions can all contribute to a standstill in business operations. And once operations slow, or even stop completely, the business is likely to lose income it could otherwise earn on a normal day.

That’s where business interruption insurance comes in. If a covered event gets in the way of business operations, business interruption insurance can cover the revenue you miss out on while the doors are forced shut. Many people believe that their commercial property coverage is enough; however, this helps fund rebuilding after a covered disaster, but it does not cover lost earnings during the rebuilding process.

Even when your business cannot operate normally, expenses still accrue, such as rent, employee salaries and taxes. Without a steady income, could your business afford to continue paying the bills? Business interruption insurance can provide the necessary funds to keep going through a crisis. Additionally, if your business’ location is rendered unusable, this coverage can fund a temporary location for your business to operate in.

Another consideration is your suppliers. Even if your business is able to operate as usual, a primary supplier may face disaster. With a limited flow of goods/supplies, your business may suffer as well. Business interruption insurance can come in handy in similar situations.

Your independent insurance agent can evaluate the needs of your business and search for policies on your behalf. Additionally, he or she can make recommendations for action steps you can take now—such as backing up your business’ income records on a cloud drive—to help streamline the claims process if disaster should strike in your area.