However, damages caused by a covered peril are not the only problem that needs attention. Because of a business peril, the business might not be able to resume its operation immediately. The business will experience a loss of income for some time.
Business interruption insurance protects you from this specific problem. Check out this guide for more information.
Business interruption insurance is a safety net for when a business experiences interruption due to certain perils. Perils are what cause damages to a business, such as natural disasters or crimes. If the business suffered damages from a peril covered by the policy, the insurer would help pay the interruption expenses.
What Does It Cover?
As mentioned above, business interruption insurance covers the expenses due to the interruption, not the damage itself. These interruption expenses include the loss of income due to interruption and damaged products and other extra expenses.
Loss of Income
In the case of loss of income, a business still has its expenses even if it suffered such a disaster. One example is the staff's salary. The employees still need to be compensated even if the business experiences financial difficulty. This moment is where the insurance policy steps in to shoulder the salary expenses.
As for the extra expenses, one example of this is the relocation expenses of the business. If the business establishment is not fit for operation, the business owner might consider renting a temporary location. The insurance policy can then shoulder the rent of the place and the bills that come with it.
Businesses are always exposed to a lot of risks. Because of this, the importance of securing excellent financial protection becomes one of the top priorities in business. Being uninsured or not insured at all could be the greatest mistake a business can commit. Make sure that your business does not run on great risks and mistakes by obtaining comprehensive business insurance.
At Brad Spurgeon Insurance Agency Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (409) 945-4746 or Click Here to request a free quote.