Why Business Interruption Insurance Is Crucial in Times of Crisis

Businesses typically rely on consistent and dependable operations to produce goods, provide services or otherwise accomplish goals promptly. However, unexpected events may eventually disrupt your company’s ability to achieve results and maintain productivity, making business interruption insurance essential.

What Is Business Interruption Insurance?

As its name suggests, this type of coverage assists with losses and expenses arising from interruptions in your company’s normal functions. It may also be known as business income insurance. By securing this type of coverage, your company can establish and maintain financial security in the wake of disruptions and delays that might otherwise incur devastating losses.

What Can My Insurance Cover?

Business interruption insurance can be an invaluable investment in your company’s future. Your policy can provide payouts to assist with many losses and expenses following covered incidents, including fires, vandalism, burglaries and certain types of water damage. Consider how the following real-life scenarios might play out differently thanks to business interruption coverage:

• If a fire breaks out in your building and destroys inventory and equipment, you’d have to wait for repairs or new supplies to continue operations. You could lose significant revenue during this time, but business interruption insurance can help recoup these losses.

• After a break-in, your company might need to repair or replace essential assets. Additionally, law enforcement may even need you to delay or shut down operations while they investigate. Fortunately, your insurance can assist in managing financial repercussions and help pay for ongoing expenses, such as utilities and loans.

• Burst pipes can quickly and unexpectedly inflict devastating water damage on your premises. Such incidents may even render your premises temporarily uninhabitable. A claim against your business interruption insurance could garner funds to assist with moving to and setting up a temporary relocation where you can resume operations.

Without coverage, any one of the aforementioned situations could impose unexpected and disastrous expenses that might derail your business’s financial security and jeopardize its viability.

Where Can I Get Coverage?

Business interruption insurance may be available through various means, including as a commercial property insurance endorsement, a standalone policy and part of a business owners policy.

At The Wyatt Agency in Chester, South Carolina, we’ll help you assess your needs and compare coverage options. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.