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Written by Adam Miller
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How Business Interruption Insurance Can Help Save Your Business When Disaster Strikes

Business owners understand the importance of having quality commercial insurance protection when disaster strikes, whether it's Commercial Property Insurance, General Liability, Workers Compensation, or Commercial Auto. However, one very important type of commercial insurance is often overlooked by many businesses, which is Business Interruption Insurance, also known as Business Income Insurance.

Having this type of coverage can mean the difference between your company making a full recovery and succeeding for years to come, or shutting down permanently after a major disaster. Today's Aegis blog post takes an in-depth look at Business Interruption Insurance, specifically what it covers and how it can be an essential piece to recovery efforts after a catastrophic event.

Definition of Business Interruption Insurance

Business Interruption, or Business Income Insurance, works by covering the loss of business income after a disaster or major event. When a business is forced to close due to structural damages, closed roadways, or citywide curfews, it can result in the company having to go weeks or months without revenue while also facing a growing mountain of ongoing bills and expenses. Business Interruption, or Business Income Insurance, provides financial assistance by replacing the income they would have earned had they not closed in the first place.

What It Covers

One of the reasons Business Interruption Insurance is so important to have is that it can cover a multitude of business losses, such as employee wages, lost business income, rent or lease payments, business taxes, and relocation costs. Even though most businesses have Commercial Property insurance in place to cover any repairs or asset replacement, businesses often do not have cash reserves to continue making rent or lease payments, funding payroll, paying business taxes, or covering relocation costs for weeks or months in the future. All of these payments are critical to the future of the company, so it's important to have a way to meet those financial obligations or the business will be forced to shut permanently.

Why Your Business Needs It

Business Interruption Insurance is crucial because it provides an added layer of financial protection and peace of mind to business owners. Since it covers losses not included by a standard Commercial Property policy, business owners can instead focus on reopening and generating revenue sooner instead of spending all their cash reserves or borrowing money just to reopen. In addition, because Business Income Insurance can help cover employee payroll wages during a closure, it ensures that they're able to retain the key employees needed to get the business back up and running when it's ready to reopen. Otherwise businesses would lose productivity and time having to recruit and retrain replacement workers.

Aegis Insurance & Financial Services is pleased to partner with small and medium sized businesses to get the insurance protection needed in the event of a disaster. Our team of Commercial Insurance experts can help create a customized business insurance portfolio that meets your unique business and industry needs, and can include Business Interruption Insurance, Commercial Property, Commercial Auto, General Liability, Workers Compensation, and more. Contact our Aegis office today at 713-850-7622 or fill out our online form to request a free quote!

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