Is business interruption insurance important?
Is business interruption insurance important? Most of the companies that start to operate contract insurance for business owners -BOP, in English- this insurance is a package that combines different coverages according to the type of business.
Typically, the package includes property insurance, liability insurance, and business interruption insurance.
The BOP must be completed with workers’ compensation and commercial auto coverage.
But today we want to talk about a very important coverage, business interruption insurance. Many entrepreneurs do not notice its importance.
The cornerstone of any business is staying active. The existence of the business itself depends on it. But there are certain times when companies are required to stop trading. Either after an accident, an act of vandalism, because the shopping center where it is located is closed or because the main supplier stops supplying an essential raw material to maintain production.
If the company has the appropriate policies, these interruptions may be covered by insurance. Just to cite a few examples: Imagine that you have a bakery, or a Levis specialty store, and your flour, oil, and sugar supplier, which is the same, as your Levis clothing supplier, stop supplying you because it is affected by a fire in their factories. In that case, business interruption loss contingency insurance will cover the losses you suffer due to that incident.
The same happens if, after a fire, you have to vacate your premises so that the pertinent repairs can be carried out. There is income coverage that reimburses you for the money you stop earning during the time you are closed and covers operating payments. That is, the payments of the electricity bill, the rent and other debts that the business must face.
Business interruption coverage ensures that if your company has to stop due to covered damage, the money will keep coming in and you won’t be out of business.
All businesses are different, it is best to call a Univista Insurance specialist so that he can explain the details of the different coverages that can protect you in case you are forced to interrupt the activity. Is business interruption insurance important?