Keeping your business running steadily is on everyone’s mind during these tough economic times, and the right small business insurance policy can help protect you. For example, if you have problems at your existing location, and need to relocate, the right insurance policy can mitigate financial loss due to lost income during your transition.
The idea behind business interruption insurance is to protect your income against loss of cash flow. If doing business at your current physical address has become impossible, protection with this policy will keep you making payroll even if you have to close your doors in the short-term. Examples of when interruption protection may be utilized could be natural disasters like hurricanes physically damaging your storefront, or inventory losses and damages from vandalism that make it impossible to continue doing business, at least temporarily.
Twice the Coverage
In fact, interruption insurance can cover not only your old location, but your new one as well, at least during the transition period. Benefits will pay for fixed expenses like rent, utilities and payroll. Additional and fluctuating expenses, like paying double the utility bills when starting in a new location while still maintaining the previous offices, may also be covered by business interruption coverage. Benefit payouts are usually determined by taking cost averages from existing business records.
Although most small business owners already hold insurance policies of some kind for their company, they’re often not aware of the limitations that are often included in the small print. Interruption insurance is designed to fill in the gaps and give you more total protection.
Protecting Your Investment
Your business is probably your single largest investment, and is paying not only for your livelihood but for that of your employees as well. Investing in business interruption insurance could be one of the best additions to a standard insurance plan you can purchase. Unfortunately, it’s also one of the add-ons that’s most often overlooked by small business owners who mistakenly believe their existing property insurance has them covered. For more complete protection against the unexpected, a small business insurance policy that protects you from business interruptions is a must.