Business Interruption Insurance can replace your revenue when you're forced to close your business for certain reasons. Specifically, if a fire (or any event covered by your Commercial Property Insurance) means you have to shut your doors, Business Interruption Insurance can help pay ongoing bills until you reopen.
Your Business Interruption Insurance coverage can help pay…
- Employee salaries.
- Loan payments.
Repairing a ruined office or shop may seem expensive – and it is. But repairs are only one expense you'll face after property damage. As long as you can't open your doors, you can't bring in revenue. That's what's known as "business interruption." According to one insurance company's report [PDF], the average business interruption claim tops $1 million dollars.
So if you have Property Insurance (or a Business Owner's Policy) without Business Interruption Insurance, you could be in serious financial trouble if you ever have to shut down unexpectedly.
Business Interruption Insurance is an essential survival tool for small businesses.