Business owners can find themselves in a dire situation when their ability to operate is suspended. A business that has to halt activities or close its doors to customers will likely face significant financial hardship. It’s extremely that businesses safeguard themselves against this type of occurrence with insurance.
When do Do Businesses need to Use Coverage?
A business could have to temporarily close due to numerous possible scenarios. For example, damage to a business’ premises, a severe weather event, or a state of emergency could prevent a business from operating. In general, businesses may make claims based only on extended closures and not for interruptions that are very brief in duration.
What Expenses Can a Policy Cover?
A business interruption insurance policy can provide a business with the revenue that it has lost during the time that it is closed. In addition, a policy can help a business pay for the ongoing expenses that it is unable to afford due to lost revenue. For example, a business could use its coverage to pay for the cost of leasing space or equipment.
Determining the amount of coverage that your business needs could be difficult. Your finance team should work closely with an expert to identify the right level of coverage so that your business will be adequately protected.