There are several different types of insurance that business owners should have. One of the increasingly popular types of coverage is business interruption insurance- sometimes known as business income insurance. Some owners neglect to obtain this type of policy because of cost, while other owners may think the property or casualty insurance coverage they maintain are adequate.
In the event of a natural disaster (fire, tornado, massive storm, etc.), your business can result in a forced shutdown and normal business operations will be interrupted. While property or casualty insurance will cover the loss of your property, what will offset your actual lost profits? This is where business interruption insurance comes in.
Depending on your coverage, business interruption insurance is not only beneficial when the facility YOU use for storage or to operate encounters a disaster, but also if there is a prolonged water or gas outage in general, or even if your primary supplier shuts down.
Think of this example: Remember Super Storm Sandy back in 2011? After the storm, a prolonged power failure caused many problems that led to a decrease in sales for a New Jersey woman who ran 3 e-commerce websites selling sportswear. Thankfully, she had business interruption insurance- she was reimbursed for the lost profit for missed sales during this time.
These are many other scenarios where business interruption insurance can be highly beneficial. It may be the very thing that saves your business! Questions? Concerns? Contact C&G today!
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