Reasons To Get Interruption Insurance

4/27/2022 (Permalink)

Why Should You Get Business Interruption Insurance?

A heavy storm in West Delray Beach, FL, can cause a lot of damage. While storm damage restoration specialists can help you rebuild the structure itself, who will help you keep your business running? In addition to your property insurance, you should ask your provider about a business interruption policy.

Loss Compensation
If a storm destroys even part of your building, you already have your hands full getting it back to normal. You shouldn't have to worry about the survival of your business, too. There are many expenses that business interruption insurance may cover:

• Temporary relocation costs
• Lost income
• Payroll
• Loan payments
• Monthly expenses such as rent and utilities
  Taxes

It always costs money to stay in business, but you may be surprised to find that it can cost just as much to shut down for a couple of weeks. A good interruption policy can help you bridge the gap.

Partnership Protection
The compensation that an interruption policy can provide protects not only you but also the partners who depend on consistent payment while you rebuild. Your inventory suppliers, the bank that handles your loans and delivery services all rely on your continued success to ensure their own. If you are unable to pay them, they may be unable to pay some of their partners, creating a disastrous domino effect. You need a policy to help keep these relationships in good standing.

Customer Retention
Another important relationships to consider are the connections you have with your customers. Even if they are loyal, a temporarily closed business is a risk. It doesn't take a lot of time for them to find a competitor who offers similar goods or services, and they may not return if you stay closed for too long. Interruption insurance allows you to continue offering the customer service they expect.

You can rebuild your structure after storm damage, but it may be harder to regain business lost during a temporary closure. Interruption insurance can ease some of this struggle.