The Importance of Business Interruption Insurance
What you need to know about this essential commercial coverage.
Business interruption insurance covers a portion of your company’s lost revenue in the event that it must temporarily pause operations. In addition to replacing lost income, this insurance will also cover your business’s recurring payments such as its rent, utility payments, and employee paychecks. While business interruption insurance is considered an essential form of coverage, many business owners do not know anything about it. If this is true for you, then here are the answers to some of the most frequently asked questions.
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 is 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. Need help securing the right commercial coverage to keep your business safe? If so, then contact the experts at East End Insurance Agency. Our dedicated team is eager to assist you with all your business insurance needs today.Tags: The Importance of Business Interruption Insurance