Insurance

Expect the unexpected and feel secure.

Protect yourself with Business Interruption Insurance.

When you own a small business, you depend upon that business for your livelihood. You dedicate more time to your business than the other portions of your life and expect that it will succeed as a result of the hard work and time you have invested. Your business depends on you to survive, just as you depend on the return from your business to live.

So what happens when the unforeseen occurs? Buildings may burn and the contents of your business can be damaged or stolen. While these physical items can often be readily replaced, the loss of revenue that arises from your inability to use them often cannot.

Perhaps more importantly, time will soon become a factor. While you're awaiting the reconstruction of your building or the receipt of new stock, two things happen. First, your income decreases in this interim and, for new businesses, this could affect your ability to restart once the stock arrives. Secondly, your customers suffer and may go elsewhere to access the products or services they normally receive from you. Even worse, these customers may not come back once your business is up-and-running once more, further damaging your bottom line. So how do you replace that lost revenue?

Any business that needs to worry about protecting profits in the event of a covered loss (and which small business owner does not?) should consider purchasing business interruption insurance. Business interruption covers a business for loss of income as a result of a covered loss. It is also known as business income, loss of profits, time element, use and occupancy coverage.

Business interruption kicks in when your business cannot operate as a result of a covered loss. As a result of the loss, your operations must shut down and business interruption covers the continued business operation expenses, as well as the profits/losses that would have been earned had the interruption not occurred. Coverage begins from the time of the loss and continues until the time that the business is back up and running at its pre-loss state.

Additionally, if your business location is damaged as a result of a covered loss and you can operate at a temporary location, you'll need to buy extra expense coverage. This coverage will cover your costs above and beyond your normal operating expenses for you to continue operating your business at a temporary location. It even covers things such as the costs associated with the relocation and is a compliment to business interruption.

For your protection it is wise to purchase both business interruption insurance and extra expense coverage. Your business is your most valuable asset and you need to do whatever it takes to ensure that you're covered should the unforeseen occur. While your life may often depend on fate and circumstance, your business should not.