At any given time, companies can experience interruptions to their daily operations due to a number of causes, such as power and utility outages, fire, theft, vandalism, or lightning strikes. Although Commercial Property insurance can cover the cost of replacing or repairing damaged company assets, it does not provide any assistance for companies to cover existing expenses during the business closure. Thankfully, business owners can get help covering existing expenses and keep their business afloat with Business Interruption Insurance. In today's blog post, learn more about the benefits of Business Interruption Insurance and how it can help protect your company's future.
Make Rent or Lease Payments
When a growing and healthy business is struck by disaster, the first question is generally, "How soon can we reopen?" Making repairs and replacing business equipment can require both time and significant expenses, but in the meantime rent or lease payments are still due. Business Interruption Insurance allows business owners to continue making rent or lease payments while the business is closed for repairs or utility interruptions. This helps prevent business owners from defaulting on rent or lease agreements, and losing their location because of unhappy landlords.
Cover Payroll To Retain Employees
Another key benefit of Business Interruption Insurance is that it can provide the financial means for business owners to cover payroll for key employees. While the company might not be able to afford continuing to pay all employees during a significant closure period, it can help retain key employees and staff members by covering payroll expenses for hard-to-replace team members. This reduces the likelihood of losing valuable employees to competitors, or having to lose productivity by training replacement employees.
Avoid Tax Payment Delays
One of the most common areas overlooked by business owners in the process of rebuilding and replacing damaged company assets is in regards to corporate tax payments. Depending on the size of the business, tax payments may be required to the federal or state government on an annual, quarterly or even monthly basis. Any delays in tax payments can cost the business in both penalties and interest on top of the existing tax bill. Business Interruption Insurance can help cover existing tax liabilities to avoid penalties, interest or other negative repercussions from late payments.
When disaster strikes a business, business owners need all the help they can get to reestablish normal operations and generate revenue again. Aegis is proud to partner with small and medium sized businesses throughout the greater Houston area to ensure that they can get back on their feet as soon as possible. Aegis offers a full range of reliable, affordable, and top-quality commercial insurance options, including Business Owners Policy, Commercial Property Insurance, Business Interruption Insurance, Commercial Auto, General Liability, and Workers Compensation coverage. Call the friendly and experienced agents of Aegis today for more information or go online for a free quote!