Should I have business interruption coverage?
Should I have business interruption coverage? Businesses, throughout their life, face numerous threats. Some of them cannot be controlled or prevented by the owner, however, if they happen, they would paralyze the activity of his company. Precisely for this reason, there is business interruption insurance.
Having business interruption insurance or not having it can mean the continuation or closure of it forever in the event of unexpected termination.
For example, right now we are in the middle of the 2021 hurricane season, imagine that your business is flooded and you are forced to cease activity to restore all the damage that the water has caused.
If you have flood insurance, you will receive money to repair the damage. But the funds provided by this insurance will not cover the loss of income that your business loses for the week or 15 days that it is closed as long as it can reopen. During this period, your obligations will continue, rent, wages, electricity, repayment of debts.
If it is a restaurant, when resuming the activity, the customers will not return immediately, since they will have discovered other sites of the competition. You will have to make great deals to be able to compete and be attractive again.
In short, business interruption insurance covers the loss of income of the business forced to close its facilities due to a danger foreseen in the policy and, in addition, the expenses to make it operational after closing. Should I have business interruption coverage?
If you are an entrepreneur, contact your Univista Insurance agent and inquire about obtaining business interruption insurance. The agent will advise you on the best type of coverage you need depending on your activity and the area where your business is located.