To be truly prepared for any interruption in your business, it’s important to be aware of your options when it comes to coverage. In the United States, there are types of business interruption insurance, including one that you may not have heard of before called COVID business interruption insurance. Let’s take a look at business interruption insurance and if your business would benefit from it!
What is a Business Interruption?
Business interruption coverage pays for lost income if damage to your building or stock prevents you from operating. It’s useful for companies that don’t have enough cash on hand to cover an extended period of downtime or businesses whose work requires them to be near their operations. Businesses exposed to natural disasters, manufacturing industries, and high-risk stores often take out business interruption coverage.
Disasters such as fires, earthquakes, and floods account for more than 75% of all-natural disasters. Around 75% of these natural disasters result in building damage. If you’re unlucky enough to experience one of these events and it leads to disruption in your services, you could lose customers and be forced to lay off staff members while you wait for repairs. That’s why most businesses purchase business interruption coverage when they buy equipment or property policy.
When Do You Need Business Interruption Insurance?
There are distinct situations when you should consider purchasing Business Interruption Insurance: when you’re launching a new company, when you’re selling one and when an event has already occurred. Each scenario offers unique challenges and opportunities, so knowing how to choose between them is key to ensuring that your business is always protected.
Business Interruption Insurance for a Pandemic
It’s no secret that pandemics have always been a part of human history. Historians estimate that three of every four people who have ever lived have died from some infectious disease. If you’re running a small or medium-sized company, there’s only one thing worse than losing an employee: losing all of them. Even though it seems unthinkable, disease outbreaks are real threats to businesses, especially if they affect employees working in close quarters with each other.
Fortunately, you can take steps to protect yourself. Covid Business interruption insurance covers operating expenses when you’re forced to close because of unforeseen circumstances like storms or earthquakes, but that doesn’t mean it’s not also well-suited for handling pandemic risk. You can use BI insurance to cover time lost while employees are being treated or quarantined and while you rebuild systems following an outbreak.
Contact Drip Hydration today for your needs.
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