Balancing the daily needs of your business with planning for its future is a difficult balancing act for owners. There are many operational needs your business has requiring your attention that future considerations can fall by the wayside. However, just as many people are one paycheck away from having financial problems, many businesses are one storm away from shutting their doors.
Business interruption insurance can help your business keep running when a natural disaster occurs. Keep reading to learn what comes with business interruption insurance in preparation for your disaster recovery.
What is Business Interruption Insurance?
Insurance is there to help when the unexpected happens. Though there are many specific types of insurance - business interruption insurance tries to maintain the consistency of your business transactions when a catastrophe strikes. If your business closes due to a disaster, this insurance can pay for revenue you lose, standard expenses, and relocation costs.
Benefit #1: Lost Revenue
If your business is unable to provide products for sale, help customers, or work with clients due to damage, you will get compensated for lost revenue. This section will keep your doors open by maintaining your cash flow.
Benefit #2: Employee Wages
Without pay, employees will not be able to wait for work. Interruption insurance allows you to continue making sure payroll goes through for your workers. Ensure the length of payroll coverage for your policy - standard lengths are up to one year.
Benefit #3: Taxes
Even when your business is in a short-term shutdown, you’ll have to pay taxes. Expect to meet both quarterly and annual tax requirements. Business interruption insurance will offer you the funds to cover your taxes in the event of a disaster.
Benefit #4: Lease or Rent and Loan Payments
Even if you cannot open for business at a leased or rented location, you may still need to make payments. Business interruption insurance covers this cost when you aren’t making money. In this way, you will be able to focus on getting your business back up and running.
Business loans are still in effect after a disaster. Business interruption insurance covers your payments when your doors are temporarily shut.
Benefit #5: Relocation Costs
Some disasters cause business owners to relocate. Business interruption insurance can help to cover moving costs and new location rental costs.
Partnering with a Professional Disaster Recovery Expert
No one wants a disaster to strike, but business interruption insurance can help protect your business, so you have the least amount of change as possible. If your business recently experienced a catastrophe, we can help. We perform fire, water, storm, and mold remediation to get your business back into working order. We have worked with insurance companies in the past, so your project will be in good hands with us.
Reach out to the team at Jarvis Construction at (734) 418-9070 to get started on your project.