Interruption insurance, a safe-conduct to operate again
Interruption insurance, a safe-conduct to operate again. Marketing specialists maintain that to create a business, the entrepreneur must overcome different barriers. One of them is to overcome the logical fear that the business may not be able to continue working for some reason, such as a fire, or after the passage of a hurricane, and they, however, have to continue to meet their financial obligations.
This is where business interruption insurance plays a key role, one of the key protections that must be included in the commercial insurance package, known as a BOP. Its objective is to restore the productive activity of a business as soon as possible, interrupted by covered damage, and thus protect the owner from losing his investment.
Imagine that your business suffers a fire because this coverage can reimburse you for lost profits during the time it is closed, rent, money to pay for municipal water and electricity services, taxes, and, if necessary, relocation costs. Put yourself in the worst, imagine that your business, after the loss, cannot reopen in that same location, then business interruption insurance – as it is also known – would cover the costs of moving your store elsewhere. It would also be in charge of covering the payroll of its employees and the necessary expenses to return to operations.
It is important to clarify that if your store, bakery, beauty salon, or workshop is forced to close due to uncovered damage, such as a flood, business interruption insurance will not cover you. In that case, you will need a flood policy. Interruption insurance, a safe-conduct to operate again.
When it comes to purchasing your interruption insurance, you need to prepare and get a good grasp of your business numbers, including mastering how much it would cost to start your business again elsewhere. That way your coverage will be fully effective, even if the damage causes the worst-case scenario.