Why Business Interruption Insurance is vital for any business
Your business is your source of income. So, if the running of your business is interrupted in any way, that source of income is at risk or could cease altogether.
It takes just one major event beyond your control, such as fire, storm or act of vandalism to interrupt your business. Many small business owners haven’t considered the impact that one of these events would have on their business or the related loss of revenue that could occur.
Why you need Business Interruption Insurance
Business interruption insurance essentially supports the cash flow and profits of a business following an insurable loss. When a premise suffers damage the productivity of that premise is usually limited and sometimes has to be closed altogether whilst repairs take place.
Whilst property insurance covers the physical damage to the business, the difference with business interruption insurance is that it protects a business owner’s financial position if cash flow and profits have been affected as a result of the loss that has occurred.
Protecting the business revenue stream with business interruption insurance provides peace of mind to business owners that they have properly safeguarded their business, their family and their employees against financial loss.
What kind of things are covered?
Under a standard business interruption insurance policy your business is covered for loss of gross revenue and increased expenses during the affected period, this can include expenses such as:
- Loan repayments
- Employee costs
- Supplier payments
- Management of key customer accounts
If the temporary closure of your business would have a significant financial impact then you should consider putting business interruption insurance in place. Knowing that your financial obligations are being met whilst your business operations are being reinstated will give you the time to focus on rebuilding your business.
How Resilium can help
Your Resilium advisor can assist in understanding your needs and finding the most suitable business interruption insurance product for your business. Not only will they assist in finding the right policy, but in the event of a claim your local Resilium adviser will help you get back on your feet as quickly as possible.
For more information, please contact your local Resilium Adviser today.
The information provided in this article is of a general nature only and has been prepared without considering your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Resilium directly.