When is it the Right Time to Get Business Interruption Insurance? 

Business interruption insurance can be critical to your company’s long-term financial stability and perceived reliability. Regardless of your attention to detail or employees’ experience levels, you’ll likely eventually encounter situations that disrupt or delay your everyday operations.

Some of these incidents, such as natural disasters, could be beyond your control. Fortunately, by understanding and retaining appropriate coverage, your business may be equipped to weather these storms and regain its footing.

How Do I Know When I Need Coverage?

Simply put, business interruption insurance should be considered an essential loss control measure for nearly all organizations.

Even if you have substantial financial resources to fall back on or robust plans prepared to recover as quickly as possible from unexpected situations, losses from even brief interruptions could have dire consequences.

This means you should consider business interruption coverage a necessity from the moment you open up shop.

Coverage may be particularly essential in some cases, such as if you manage a seasonal business. Imagine you operate a waterfront restaurant that brings in much of its annual revenue during the summer when tourists flock to enjoy nearby beaches.

An accident impacting your ability to operate as usual could be far more impactful during this time of year than during slower months.

Similarly, if you own a ski resort, you may want to reassess and increase your coverage before the winter months, as incidents potentially forcing even a brief closure could have dire fiscal consequences.

What Does My Policy Cover?

Business interruption insurance can be a versatile type of coverage, potentially helping your company manage various expenses and losses. While policies’ exact details may vary, payouts can typically assist with the following:

• Lost income

• Wage replacement

• Utility bills

• Tax payments

• Loan payments

• Temporary relocation costs

• Training costs related to new equipment

We’re Here to Help

Contact Aztlan Insurance Agency today to learn more about business interruption coverage or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.