3 Reasons You Need Business Interruption Insurance

5/9/2022 (Permalink)

In the event of a fire, you'd still have to pay the lease or mortgage on your retail space while a commercial fire restoration company does repairs.

Three Reasons Why You Should Get Business Interruption Insurance

When you start a business in Luke Air Force Base, AZ, you have a lot to do before opening your doors. There are a lot of permits to get, materials to purchase, and staff to hire. It's also important to think about what you'll do if you experience an interruption to your business. By creating a contingency plan for emergencies, you prepare your business to succeed long-term. Here are three reasons you need business interruption insurance.

1. Pay Your Lease During Suspension

Most interruption insurance policies cover you if you have to suspend your business activities due to events like fire or theft. In the event of a fire, you would still have to pay the lease or mortgage on your retail space while a commercial fire restoration company does repairs. Business interruption insurance covers your lease while you can't earn money to pay it.

2. Pay Your Employees After an Emergency

After an emergency such as a business fire, you still need to pay your employees while repairs are done. Your employees count on you for their income, so it's crucial to be able to pay them to keep them around so you can get back to business as soon as possible. Interruption insurance helps you cover payroll.

3. Pay To Relocate Because of Fire Cleaning

In instances of severe damage, you might need to temporarily relocate while your permanent space undergoes a deep fire cleaning process. Interruption insurance can cover the costs of relocating to a temporary location. As you shop for interruption insurance, talk with a representative about what costs could be covered and coverage limits. It's important to consider how far you would have to move, how much there would be to move, and if you would need additional storage.

When you plan ahead for a business interruption by purchasing insurance, you are planning for the future success of your business.