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When it's Important to Stay in the Know.
Avoiding the Lasting Impacts of Business Interruptions
Even short-term disruptions can have long-term ramifications — especially when they catch a business off guard. Whether brought on by a natural disaster, utility failure or another unexpected event, surprise halts can place everything from revenue to staffing and loan payments at risk.
Business interruption insurance offers essential protection to help businesses stay afloat and get back to work more quickly. Here, our commercial insurance professionals offer a look at the important role such coverage can play, the protection it offers and resources to help keep operations on track. It’s all about helping you take a strategy-driven approach when it matters.
Understanding How Business Interruption Insurance Can Help
Halts in business can have extensive repercussions, and sometimes in surprising ways. Business interruption insurance helps cover a range of financial losses, including those listed here.
Revenue: In the event of a disruption, business interruption insurance provides coverage for income your business would have earned during a closure period if it had been operating normally.
Rent or Lease Payments: Even if your premises are unusable following a disaster or other event, many leases still require that you make payments. Business interruption insurance allows you to continue making rent or lease payments, even while your business is not operating.
Relocation: In the event that your primary location is unusable following a disaster or other event, you will likely have to relocate in order to remain open and continue generating revenue. Business interruption insurance can cover the expenses of moving your business to a temporary location and may include both moving and rent costs.
Employee Wages: If you are unable to operate, it is likely you will not be able to continue paying employees. Business interruption insurance can help you avoid losing staff while you’re closed by ensuring that you make payroll. This is especially important, as finding new employees is often more expensive than keeping them.
Loan Payments: If you have an outstanding loan, you will need to continue to make payments even if your business isn’t fully operational. Business interruption insurance will ensure you never miss a payment until you are fully operational again.
Keep Your Business Interruption Risks to a Minimum
Although there’s no way to completely eliminate business risk, making an effort to pinpoint obstacles likely to impact your operations — and taking steps to minimize their impact — can help. Our Business Interruption Strategy Sheet gets you started.
Weather Aware with BCH
How Quickly Could You Get Back to Business Following a Storm?
Insurance coverage provides much-needed security, but a company’s resiliency often depends on how quickly it resumes operations after a disaster scenario or emergency. In fact, FEMA reports an estimated 40% of businesses never reopen after a disaster, while another 25% fail within a year.
Our Business Continuity Planning Guide helps you assess your business risks and create a recovery plan designed to help you quickly return to business as usual. Download your copy today!
BCH’s Risk Management Center Offers Uninterrupted Support
With incident tracks that make it simple to report and manage claims, an extensive library of risk management resources to safeguard against the unexpected and training support to keep your team working in the safest, smartest manner possible, BCH’s Risk Management Center (RMC) is here to help.
