4 Common Perils Business Interruption Insurance Can Help You Get Through
Posted on: April 13, 2018 by Signature Insurance Group
Business interruption insurance (BII) helps business owners recoup the loss of income that can occur after a major disaster. It can help pay your employees and other fixed expenses, as well as compensate for income that you are unable to generate while your business is closed for repairs. A BII policy can mean the difference between reopening after a disaster or closing your doors forever. Without business interruption insurance, affected business owners are left to pick up the pieces on their own. According to Federal Emergency Management Agency (FEMA), nearly 40% of small businesses are unable to recover after a disaster and have to close permanently.
Business interruption insurance can help your business survive a number of scary situations. Here are four common perils that business interruption insurance can help you get through.
1. Wind and Hail
Sometimes you are given enough time to prepare for a storm, and other times they can happen out of nowhere. An unexpected windstorm can cause significant damage to a building, causing a business to have to shut down operations until it can be made safe for customers or clients once again. Hail is another weather event that can cause serious damage. Strong hail can break windows and damage the roof of a building, allowing water leak in. Wind and hail can also damage or destroy signage around the building or nearby, which could slow down business.
A fire is one of the most damaging events that a business can endure. Flames, smoke and heat can destroy a business’s entire inventory and equipment in minutes, and firefighters’ efforts to put out a fire can cause additional damage to the building and its contents. It can often take months to rebuild after a fire, which is a major loss of income that most businesses can not recover from on their own.
3. Mechanical Breakdown
If your business depends on specialized equipment to operate, a breakdown can shut down operations anywhere from a few hours to a few weeks or more. While you’re waiting for parts to be ordered or new machinery to be installed, you’re losing income every day. You may still need to pay employees, as well as other fixed operating costs, and if you don’t have a significant savings fund or insurance coverage for this type of emergency, it can drastically threaten your livelihood.
Some types of vandalism can be more of an annoyance than anything, but there are times where vandals can cause a business to have to close in order to make repairs. Even just taking one day to close the business and replace broken windows or repair damaged equipment can mean a significant loss of income.
About Signature Insurance Group
Signature Insurance Group has been working since 1969 to provide comprehensive insurance solutions to individuals and businesses across the United States. We offer a range of insurance products and services in risk management, employee benefits, business insurance, and personal insurance, and we pride ourselves on our commitment to creating “Signature Relationships” with our clients where we commit to providing the best, most comprehensive service possible. To learn more about our goods and services, contact us today at (800) 464-3606.