Most families sit down and create budgets. They predict their income to measure how much they can afford now and in the future. Just like families, businesses also rely on predicting their income from sales and production of goods and services they provide. But what if an accident, loss, or disaster occurred that would inhibit their ability to sell their goods or services, or limit the production of goods in their plant? Now what? How will their business survive? There’s still rent and taxes to pay, employees you don’t want to lose, and other ongoing expenses that don’t go away just because your business isn’t running. That’s where something called “Business Interruption Insurance” comes in.
This coverage provides a company with funds to make up the difference between its “normal income” and its income during downtime caused from a fire, storm, water damage, theft, accident, vandalism, or other cause.
A typical policy will cover the cost to repair or replace buildings and equipment, but it does not cover the loss of income the business is likely to experience during its downtime. Business Interruption Insurance will make sure companies have the money for ongoing bills, salaries for key employees, and other expenses. This is certainly one area of protection you don’t want to skimp on.
To find out if you have the coverage, what the cost is, or if your Business Interruption limits need to be reviewed, please contact our office TODAY to discuss it with your Commercial Risk Manager.
