Why You Need Business Interruption Insurance

Insurance to keep your business afloat.red "Sorry, We Are Closed" sign

From major damage events to serious liability suits, there are many reasons why your business may need to close its door temporarily.  However, when business operations come to a halt and revenue stops coming in, many companies do not have enough savings to weather the storm.  In many cases, temporary business closures turn into permanent ones.  Fortunately, you can ensure that this grim reality does not happen to your company by securing the right business interruption insurance.  Here’s what you need to know about this commercial coverage.

  • What is Business Interruption insurance?

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 businesses financial support to pay for the recurring expenses that they are responsible for.  For instance, this type of insurance can help you cover your business’s rent, utility bills, and employee paychecks.

  • When Does This Insurance Kick In?

Business interruption insurance coverage kicks in whenever a covered peril causes damage to your business’s physical building or the supplies and equipment that are necessary to complete normal operations.  Common business interruption situations include fire, flood, vandalism, theft, extreme weather events, and so on.

  • Is This Coverage Mandatory?

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.

This is what you need to know about business interruption insurance.  Are you looking to secure this coverage for your company?  If so, then contact the experts at ISU-Wissink Insurance.  We are ready to assist you with all your commercial coverage needs today.