Why Your Company Needs Business Interruption Insurance
When storms compromise an office building’s integrity, business must be paused while those responsible for operations rebuild. Meanwhile, anyone owed money still needs to be paid, even though earnings have been momentarily suspended. The ensuing budgetary gap can be disastrous. Prevent this financial bind from harming your venture with insurance specifically tailored to deal with this potential issue.
What Business Interruption Insurance Covers
While your company in Orting, WA, is shuttered, policies designed to bridge these monetary shortages may be used to cover:
- Lost income
- Employee payroll
- Rental or lease payments
With necessary expenses like these accounted for, other funds are freed to employ a commercial storm damage restoration company to bring your enterprise back to operational status.
How Business Interruption Insurance Works
Regardless of policy payout, the amount spent on your rebuild remains at your discretion. Carefully monitor expenditures. You will not receive reimbursement for utility damages, disasters not specified by your agreement, losses related to pandemics or undocumented income.
Determine how much coverage you require by estimating projected gross earnings. Executing this step accurately is vital, as you must cover any shortfall while your closed business is not generating income.
A few factors determine what you should expect to pay for business interruption insurance. Your type of work and how many people you employ, as well as prior claims experience, are all factors that impact the cost. Location is also a significant variable, as areas prone to severe weather events inevitably feature higher premiums.
Keep in mind that policies can be endlessly tailored. If you anticipate needing cash for other expenses, such as equipment leasing, temporary office rental or replacement of electronics, your agreement may be supplemented with additional clauses.
When storm damage halts your company’s operations as you rebuild, the resulting financial shortfall may be a major problem. Prepare for this eventuality by getting exactly the coverage you need.