Have you been going back and forth on whether your business needs business interruption insurance or if you can afford to go without it?
To help you decide if this coverage is right for you, let’s go over the basics and get a better understanding of what business interruption insurance is and how it works.
What is business interruption insurance?
This is a form of commercial insurance meant to help businesses stay afloat when they’re temporarily forced to close down for disaster-related damages or perils.
What does business interruption insurance cover?
Business owners rely on their business income to cover a variety of costs, including utility fees and employee wages.
With business interruption insurance, you’ll have a way of covering these costs if your business isn’t earning any income if it’s temporarily forced to close for reasons covered by your policy.
Who needs business interruption insurance?
Nearly any business who faces the risk of being shut down temporarily if disaster strikes could benefit from business interruption insurance.
Consider how long your business could stay afloat without any business income if it were shut down for repairs after a disaster, like a fire, that’s covered by your policy strikes.
For most business owners, their answer isn’t a big number, which is why they choose to add this coverage to their policy.
How do I buy business interruption insurance?
A business owner needs to have an existing business insurance policy in place to get business interruption insurance.
That means you can’t purchase it on its own so it won’t ever be the only form of insurance your business has. What you can do is add it to your existing policy or add it to a new policy when you buy it.
When you buy business interruption insurance, be sure to add enough to last more than a few days. As you can imagine, when disaster strikes, it often takes longer than this to get a business up and running again.
Are you interested in learning more about business interruption insurance and other ways to financially protect your business? Get in touch with Salt Lake City Insurance today so we can help!