When I sat down to write this blog post I didn't realize the varied types of companies that can actually obtain Business Interruption Insurance such as some Business Opportunities, Distributorships, Dealerships, Licensee Opportunity Owners and Franchises.
Business Opportunity and Franchise owners face a myriad of issues throughout the year, unforeseen circumstances that could cause you to close up shop for an extended period of time – whether that be weather related or some sort of other natural disaster like fires, floods, etc. You may have to relocate for an extended period of time taking you out of your market for instance if you own a territory or area.
Business Interruption Insurance is a means to aid business owners just like you recoup some losses you may face if your business is shut down by some of these events. For instance, if you have business interruption insurance, you could be covered depending on your State, situation, type of business for lost profits while your business recovers to open back up again after say, a fire damaged it. This type of coverage is just as essential as business property insurance – the losses for a business owner could be too much while you wait for your business to reopen after a disaster.
This type of Business Interruption Insurance has become more and more important as of late since chaos has emerged from the shipping / dock issues tens of thousands of businesses have faced this past year or so. This type of interruption insurance is called a Contingent Business Interruption policy, which protects a business if say their supplier has troubles delivering their products to the business. If your supplier fails to deliver the products you need to fill your orders this type of insurance can be a Godsend.
From the time the loss occurs until your business is running again, Business Interruption Insurance can replace your lost profits, and provide a source of money to pay your necessary continuing expenses, like rent, payroll, taxes too. I bet you didn’t think of those expenses being possibly covered did you? All in all you need insurance to drive and many have health insurance to cover unforeseen health related issues and even some have jewelry insurance or a home or renters insurance policy to protect against theft, damage, floods and more. Yet, the lifeblood that makes this all happen, your business is often ignored and lacks the proper insurance to not only protect you, but in many cases your customers too. Many will say it is expensive and they will never be caught in a disaster. But businesses may want to reconsider interruption insurance given the rising number of natural disasters. The annual total has increased from 400 major incidents in a typical year to more than 600, according to a recent survey from global insurer Allianz. This about Hurricane Sandy or the many, many storms, including snow storms that racked almost the entire country last year. Still think you don't need Business Interruption Insurance?
Talk to your insurance representative about Business Interruption Insurance to see what might be right for your individual situation.
Carpe Diem My Friends