For numerous entrepreneurs and business owners, their businesses are their bread and butter. However, owning a business can come with many risks, such as an unstable and fluctuating income. When disaster strikes, a company’s financial wellbeing is the first thing to go. Business interruption can happen very unexpectedly. A sudden fire outbreak or a hardware malfunction can lead to a major halt in revenue. With no revenue stream, business owners have to swallow the cost of the damage and maintain their operational costs. The end result? A lot of businesses who experience business interruption without the right insurance and preparation can shut down. The financial weight and strain of the incident is too severe for the owner to handle. Investing in the right protection for your business means you are less likely to suffer financially, should a sudden incident occur. Business interruption insurance can be a lifesaver for your business.

What Is Business Interruption Insurance?

Business Interruption Insurance is your financial back-up plan for any of your business’s worst-case scenarios. If your business suffers from a sudden incident that jeopardizes your steady income and your business’s financial health, insurance can help your business recover until you are back on your feet.

A business interruption insurance policy covers the following:

• Temporary re-location

• Employee payroll

• Office or store rental or mortgage fees

• Utility fees such as electricity

• Property taxes

• Advertising costs

Why Your Business Needs Business Interruption Insurance

Running a business requires a lot of careful planning and strategy. From finances to operations, to company policies, business owners and entrepreneurs invest a significant amount of time and effort to ensuring their business is running smoothly. A significant part of operating a successful business is planning for the unexpected.

1. Faster Recovery Process
Recovering from business disasters can be a very stressful period for business owners. Managing the extra financial cost of the disaster, along with the operational costs and tax can be the tipping point for many businesses. Having a financial safety net provides owners with the breathing space to begin recovering. Business Interruption Insurance covers your operational costs so that you can focus on re-building your business and developing a plan to be back up and running in no time. The faster your business recovers, the faster your revenue and operations kickstart.

2. Avoid Bankruptcy or Significant Financial Loss
Disasters can be very costly for businesses. Whether it’s property damage, data loss or other forms of damage. From the occurrence of the incident to the aftermath, disasters add financial pressure on owners. Disasters require financial preparation, which is why a lot of businesses who are unprepared face bankruptcy in the aftermath of a disaster. Business interruption insurance can take on a portion of that financial cost so that their business doesn’t take the hit entirely.

3. Retain Employees
When it comes to your operation, your employees can make or break your business. There is nothing more frustrating than the risk of losing your employees. Financially recovering from a business disaster can hinder your ability to continue paying your employees on time, which might affect your employee retention. Business Interruption Insurance can help employers cover the costs of payroll, for when times get tough, and continue business as usual until everything has been fully recovered.

How We Can Help

Insurance should be an essential part of your business’s continuity plan. Business Interruption Insurance ensures that your business can overcome a disaster and be back up and running. For physical property disasters, we offer Commercial Property Insurance, that protects all the equipment and contents in your office. For added security and coverage, businesses in the manufacturing industry should consider investing in Equipment Breakdown Insurance. Our talented and dedicated team can help you find the right coverage for your business needs. You can view all our Commercial Insurance policies, or contact us today!