Should You Get Business Interruption Insurance?
Any business owner knows that there are a multitude of risks that come with owning and operating a business. From fires and floods to theft and lawsuits, the potential for disruption and loss is always present. One way to protect your business from financial ruin in the event of an interruption is to purchase business interruption insurance. While it is impossible to predict the future, business interruption insurance can give you the peace of mind that comes with knowing you are prepared for whatever may come your way. It can help to cover the costs of lost revenue and expenses incurred as a result of a covered event.
Business Interruption Insurance Can Cover Your Revenue Loss
Business interruption insurance ensures that a short disruption in your operation does not result in a permanent shutdown. If you have lost revenue as a result of property destruction, business interruption insurance can compensate you. It can be a valuable source of funding to help you manage the difficult period.
It Can Help You to Relocate or Cover Rental
When your office has been damaged and you are unable to continue the business, you may still be required to pay your rental during this period. A business operating without revenue can be disastrous. You can use a percentage of your compensation to cover rental and leasing fees if you have business interruption insurance.
You will be able to hold onto your lease and your workplace as a result of this. If you need to relocate your premises due to a physical disaster, business interruption insurance can cover the moving expenses as well.
Business Interruption Insurance Can Help You Pay Your Taxes
Many businesses are required to pay taxes, and tax liability can be a significant expense. You are not exempted from paying tax even if your business is disrupted.
If your business is interrupted by a covered event, business interruption insurance can help to cover the cost of your taxes. It can reimburse you for lost income and help to keep your business afloat during difficult times.
Business Interruption Insurance Can Cover Wages
Business interruption insurance can also help to cover the cost of employee wages while your business is closed. This can be a vital lifeline for businesses that are struggling to make ends meet after an unexpected setback. You will be able to pay the wages you owe and keep your staff even if your company is temporarily closed. Retaining current staff is critical to a successful recovery. The reason for this is that re-hiring employees is expensive. Employee turnover is notorious for its hidden expenses, which you cannot afford after a brief shutdown or income loss. Furthermore, you have to retrain new staff who will need time to familiarize themselves with your business processes.
Better Protection Against Unpredictable Event
Because no one can anticipate the future, purchasing business interruption insurance is usually always a wise decision. This is especially important if you operate in an area where natural disasters are frequent. Tornadoes, earthquakes, and hailstorms can cause huge damage to your property and force you to shut down temporarily. Business interruption coverage can cover some of your losses so you don’t have to fork out everything on your own.
Making a Business Interruption Insurance Claim
When a disaster strikes, one of the first things you want to do is inform your insurer. Next, go through your policy to check the coverage you are entitled to. During this process, Stone Claims Group can explain the complex policy wordings and assess your coverage. Our public adjusting services can help to maximize your claim and prevent insurance companies from underpaying you. Schedule your free claim review with us to understand more.