Business owners understand that any kind of business closure, no matter how short, can negatively impact their company and bottom line. Regardless of the cause, existing and potential customers may choose to take their business elsewhere, which can make it even more difficult when a closed business reopens. In these instances, having Business Interruption Insurance can be incredibly beneficial for companies that want to minimize the financial impact of their closure. Today's Aegis blog post examines the three key areas covered by Business Interruption coverage, and how Aegis can help companies in need of this important coverage.

Daily Expenses

Business Interruption Insurance provides significant assistance to companies experiencing a closure or interruption in service by helping cover specific financial obligations, one of them being daily expenses such as taxes, payroll, and loan payments. Banks, employees, and government offices all still require timely payments in order to remain in good standing, so Business Interruption Insurance helps companies meet these important obligations.

Lost Revenue

Business Interruption Coverage also helps companies because of the financial boost it provides in replacing revenue lost during a business closure. Rather than just losing out on revenue during a closure period, companies with this policy can be reimbursed for any income the business would have normally earned in the closure period. The end result is that companies can resume normal operations sooner in order to minimize disruption and customer losses.

Relocation and Rent

Finally, just because a company is experiencing a temporary closure does not mean they're exempt from paying their rent or lease payments to banks or landlords during the closure. Business Interruption Insurance can cover these payments so the business does not default or fall behind on rent payments, which could lead to high penalties and more financial hardship.

Business Interruption Coverage is essential if your business faces a temporary closure due to covered events, such as a fire or windstorm, which would create a significant financial hardship. This important coverage is key to all businesses that want a way to ensure they have the financial help necessary if disaster strikes. Aegis Insurance & Financial Services is committed to helping clients get the quality Commercial Insurance coverage needed to protect in the event of a catastrophic covered event. Contact Aegis today at 713-850-7622, or go online for a free quote!