3 Reasons To Purchase Business Interruption Insurance
Three Good Reasons To Buy Business Interruption Coverage
If you own a business, you are probably aware of the importance of protecting your investment by purchasing property insurance. However, while property insurance can help you get your business running again, it doesn't pay for the income you are losing while your business can not operate. Interruption insurance can help keep your business from suffering financial distress while you wait for needed repairs. These are three of the reasons to purchase this coverage.
1. Replaces Lost Income
Depending on how severe your damage is, it could take weeks or even months to fully restore your business to preloss condition. During this business interruption, you may not be able to operate at all, or may only be able to operate at reduced capacity. This coverage replaces income lost due to a covered cause of loss based on your past financial records.
2. Helps You Pay the Bills
Even if your business is shut down, you probably still have bills. You will need to pay the mortgage or rent on your facility, any utilities that still need to be connected when your business isn't operating, make payments on any business loans, pay your taxes and other business expenses that may not stop just because you are not making money. Interruption insurance helps you cover those bills while you are not operating.
3. Provides Money To Pay Employees
Your employees probably can't afford to go without a paycheck while your business is shut down for fire restoration. This insurance helps you keep employees on the payroll so that you don't need to hire new employees in Ebenezer, TN when you are ready to reopen.
When a fire or other disaster occurs, it is important to protect not only your property but your income. Without the protection afforded by interruption insurance, you may find it difficult to keep your business from closing permanently.