Here’s a scenario:
You receive a panic-stricken phone call from your restaurant security. One of the gas boilers exploded, setting the establishment ablaze. With the restaurant burnt to the ground, you need to renovate or relocate to a new place and purchase new equipment and supplies.
How do you bear the cost of these piling expenses? Furthermore, you still need to pay employee wages and pay off any debts or loans. Such nightmarish situations often plague the thoughts of entrepreneurs. Nobody can foresee such unpredictable events, and that’s why you need to get yourself covered with the right business insurance add-ons.
This insurance covers affected businesses with income to deal with losses incurred due to suspended operations. Business interruption insurance is sold as part of schemes, like All Risk Policy, Business Policy Package or Standard Fire and Special Perils Policy. It’s not a standalone product.
Here’s a list of all the criteria covered under business interruption insurance.
Before you head out and purchase this add-on, look at all the ineligible criteria under the insurance.
Entrepreneurs must wisely pick out business insurance policies. The benefits of this insurance will add a layer of security to your business.
It ensures that a temporary setback won’t force your business into permanent closure due to insufficient funds. You can claim compensation if your property has been severely damaged and made inoperable.
Regardless of the level of damage sustained by your establishment, you will still have to pay the rent or lease and repay business loans. Pay off debts and other recurring payments through the insurance, even if business activities have temporarily ceased.
After a disaster has struck, retaining your employees is crucial to sustaining your business. Business interruption insurance will ensure that your staff receives their wages, as usual, helping you keep up morale and avoid the stress of re-hiring and training.
If the disaster has rendered the premises non-functional, you might need to seek temporary arrangements at a new location. Owing to the insurance, you can rest easy and avoid incurring hefty relocation expenses and paying the initial rent or lease payments for the new premises.
Natural disasters usually differ based on the region you live in. If you live in a state or city that’s particularly prone to natural calamities, then it’s wiser to pack on additional business shields like a business interruption insurance.
While picking out business insurance, don’t skip out on business interruption insurance! It could single-handedly be the difference between temporary and permanent closure.