It’s a bright and sunny afternoon. The café is full, and orders are flowing in. Business is doing well; you are seeing all of your dreams come true. Then tragedy hits! A fire breaks out in the kitchen and wreaks havoc on the business. Thankfully insurance will cover the building and your equipment, but it looks like you will be closed for at least a couple of months…

If you were unable to operate your business for a period of time due to a loss, could your business survive? According to FEMA, the Federal Emergency Management Agency, about 25% of businesses do not survive after a disaster. Unfortunately, disasters can happen when you least expect them. How does a business prepare for something like this? How do they protect themselves?

Business Continuity Insurance

Business continuity insurance is coverage that covers lost income when your business temporarily closes due to a fire, natural disaster, or covered loss. It is also known as business interruption insurance. This coverage typically covers the following:

  • Lost revenue
  • Rental or lease payments
  • Relocation expenses
  • Employee wages
  • Taxes
  • Loan payments
  • Losses due to inability to access your building

It is important to note that these policies/riders typically exclude utilities, undocumented income, partial closings, and interrupted power events.

If your business required a physical location to generate revenue or lacks sufficient funds to survive an interruption to business, you may want to consider business continuity insurance.

When calculating coverage, consider what you would lose if your business were to be closed for a weekend, a month, or longer. The costs that aren’t covered by your current insurance policies would need to be considered. For a full picture of your coverage needs, speak with your independent insurance agent.

Here at Gannon Associates Insurance, we take the time to really get to know you and your business. We craft personalized insurance plans that fit your needs and budget to help ensure you are getting the right coverage. Give us a call at 844-GANNONS to get the conversation started today!