Running your own business presents a significant number of challenges and concerns on a daily basis, from hiring to marketing to production to expenses. It just takes one major loss or catastrophic event to completely wipe out revenue gains and company growth, which is why it so important that businesses are prepared to bounce back quickly when disaster strikes. In today's Aegis blog post, we look at how Business Interruption Insurance can help companies quickly get back on their feet after a covered event, and how companies of all industries can benefit from this type of commercial coverage.
Replaces Business Income Lost Due to Damage or Losses
Business Interruption Insurance works by providing financial help after major covered events, such as a theft, fire, high winds, lightning strikes, or falling debris. It can replace the income lost due to the damage caused, and the replaced income can help cover operating expenses, payroll, rent, utilities, and other ongoing operating expenses. Business Interruption Insurance helps by replacing income lost from the sale of merchandise, or lost revenue due to the inability to produce or manufacture goods and services.
Provides Funds for Temporary Locations
For some companies, they can get back on their feet faster if they have a way to continue generating revenue in a temporary location while repairs are being completed and damaged property is replaced. Business Interruption Insurance can help by providing funding to cover temporary locations to operate the business. These funds could cover the cost of rent and related utility expenses at a secondary location since this coverage does not cover the cost of repairs and replacement of damaged business property or buildings.
Helps Companies Fully Recover Faster
Finally, Business Interruption Insurance is so important because it provides peace of mind and a fast track to a speedier financial recovery. Without it, businesses would have to burn through all their savings and financial resources just to remain operational while repairs are made or damaged or stolen property is replaced. Many companies do not have the financial stability to afford a temporary location, continue making payroll for employees, or pay their regular rent or utilities out of pocket. Business Interruption Insurance allows companies to focus fully on their operations and recovery without completely draining all financial resources or going into a crippling debt.
Aegis Insurance & Financial Services is committed to helping companies achieve the financial peace and stability they need to survive and thrive after disaster strikes. Our team of Commercial Insurance experts can help businesses with their risk management goals, identify gaps in coverage, and ensure that companies remain on a path to growth and success even if they suffer losses or damages. Contact our Aegis team today at 713-850-7622 for more information, or fill out our online form to request a free quote!