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Why Business Interruption Insurance is More Important Than Ever

We’re all aware of the unprecedented times we’re living in with COVID-19. As we have seen, things can change more quickly than we can predict which leaves a lot of uncertainty looming – especially for business owners.

What is Business Interruption Insurance?

The best thing owners can do for their businesses is to have business interruption insurance ready should the unexpected happen. If you are to experience a loss, business interruption insurance covers your business’s physical and virtual damage.

Business interruption insurance is key for industrial business owners, small business owners and multinational firms alike. 

It’s a critical element in your business plan as it can make all the difference in the case of a breakdown of your company’s IT systems. This could be accidental, but it could also be from a virus.

Why is Business Interruption Insurance Important?

As mentioned earlier, business interruption insurance is crucial in today’s climate. COVID-19 has shown us that interruptions are possible and that we are vulnerable to the unexpected.

This means that it’s important for business owners to think about what would happen if their business were to close or slow down. A risk management strategy has proven to be essential as it is the key solution to business interruption.

What Does Business Interruption Insurance Cover?

Business interruption insurance will work to keep your business operational both short and long-term. It can cover the loss of income during repairs as well as business costs.

When you are ready to transition your business to reopening, BI insurance can also assist in making the process smooth. 

You might need to extend your insurance to include expenses for coverage of costs that are extra in terms of your normal operating expenses. This is also relevant should you need to cover expenses related to moving to a temporary location.

Business interruption insurance will vary depending on your expectations and required coverage. It’s best to consult with your broker to ensure you have the proper coverage for your needs.

Ready to explore your business interruption insurance coverage options? Call us today for a quote!

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