Why business interruption insurance is a can’t-miss coverage.
Stop for a moment and imagine what would happen if a major damage event forced you to close your business temporarily. While you might have the right insurance to pay for the necessary repairs, do you have coverage to make up for your lost revenue or pay for recurring operational costs? If not, then a temporary closure could become a permanent one. Fortunately, you can avoid this scenario by securing business interruption insurance. Here’s what you need to know about this essential commercial coverage.
- What is it?
Business interruption insurance covers a portion of a business’s lost revenue if it is forced to shut its doors temporarily. In addition to paying a portion of this lost capital, business interruption insurance also offers financial support to pay for the recurring expenses. For instance, this type of insurance can help you cover your business’s rent, utility bills, and employee paychecks.
- Do I need it?
While business interruption insurance is highly recommended, it is not legally required. However, keep in mind that failing to secure this protection could leave your business vulnerable. If you do not have enough money saved to cover the cost of a business interruption, then a temporary closure could become a permanent one. Securing the right business interruption insurance ensures that this scenario does not become a reality for your company.
- How much is it?
The cost of business interruption insurance will depend on the nature and location of your business. For instance, if your business often works with fire or dangerous substances, then this increases your business’s risk for damage. Because your risk for business interruption is higher, you will have higher insurance costs. Similarly, if your business is located in an area that experiences major storms or high fire risk, then your insurance rates will also be on the higher end.
This is why you need business interruption insurance for your business. Looking to secure the right commercial coverage to keep your company safe? If so, then contact the experts at Scautub Agency in Scotia, New York. We are ready to get you covered today.