Businesses owners know that it's never good to have an unexpected closure, whether it's due to inclement weather, utility disruptions, or damages to the building and interior property. While some businesses can easily transition to an off-site or alternate location, not all have that ability or luxury. As a result, a closure of any kind could be catastrophic to a business and their bottom line. In today's Aegis blog post, we'll look at whether or not a business could survive an unexpected closure, and what kinds of commercial insurance can help protect against losses that come from unexpected closures.

Could You Operate Elsewhere?

If you're not sure if your business could survive a temporary closure, the first thing to consider is if your company could easily operate elsewhere. If you're an attorney or contractor, it might be easy to work from home or use a temporary office until your own commercial space is available again. However, if you own a restaurant, retail store, auto repair shop, or bakery, it could be extremely difficult and time consuming to try to reopen in a new location as opposed to waiting for repairs or renovations to be completed. This is especially true for shorter closures such as utility disruptions or weather issues.

Would Employees and Customers Be Willing To Wait?

In the event of a closure, the two groups most immediately impacted are your employees and customers. Customers might not be able to wait until you've reopened and may have to take their business elsewhere, leading to a significant loss of revenue. In addition, employees still need to be paid, and if they're unable to wait for your business to reopen to start getting paychecks, they'll likely leave to find work elsewhere, leaving your business shorthanded when you are finally able to reopen.

Are You Able To Cover Unexpected Costs and Expenses?

Finally, if your business is forced to close, this can lead to a number of unexpected costs and expenses that may have to come out of pocket if there isn't insurance in place to help. For example, a serious utility disruption could mean a restaurant or bakery loses all their refrigerated and frozen ingredients, or a retail shop struck by a fallen tree could be closed for weeks while repairs are made to the building's roof, HVAC system, or other damaged areas.

Regardless of the cause, temporary closures can significantly impact a company's financial future, but having the right kind of commercial insurance can make a huge difference. In order to protect your company from the losses that can stem from a closure, make sure you have Utility Disruption, Business Interruption, and Loss of Income coverage from Aegis to help protect your business. The friendly and knowledgeable agents at Aegis Insurance & Financial Services can help get you the financial protection you need no matter what comes your way. Call us at 713-850-7622 for more information, or fill out our online form for a free quote!