When you own a business, there are different types of insurance that you can acquire. But one that is vital and important is called Business Interruption Insurance. Business Interruption Insurance is a type of insurance policy that could totally save your business from harm. According to Wikipedia, Business Interruption Insurance (also known as business income insurance) is a type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
If you own a business then you must really have Business Interruption Insurance. Here are the five factors why it can totally save your company from harm.
The Business Interruption Insurance has a large scope of coverage that could help not just your business but also the people who you are working with. As per Wikipedia, the coverage includes the following:
- Profits. Profits that would have been earned (based on prior months’ financial statements).
- Fixed Costs. Operating expenses and other costs still being incurred by the property (based on historical costs).
- Temporary Location. Some policies cover the extra expenses for moving to, and operating from, a temporary location.
- Commission & Training Cost. Business Interruption (BI) policy essentially covers the cost of providing training to the operators of the machinery replaced by the insurer following the insured events.
- Extra Expenses. Reimbursement for reasonable expenses (beyond the fixed costs) that allow the business to continue operation while the property is being repaired.
- Civil Authority Ingress / Egress. Government-mandated closure of business premises that directly causes loss of revenue.
Maintenance is one important factor of acquiring Business Interruption Insurance because if a disaster hit your office or your building and an unfortunate thing happened then your business is insured. This is important because it will be easy for you to revive your business again because you have an insurance that will guide and help you on your next steps. Maintenance is necessary because it fixes what has been damaged and broken.
When we talk about money, we are talking about the income of the company. In times of disaster, your business will surely lose a lot of income and your employees. It is important to really consider acquiring Business Interruption Insurance so that you will be guaranteed safe and funded when you start to fix your business after the damage that was made.
Health is also one of the important factors in this matter. Your health and your employees health are very important and in case all of you have been injured during the unfortunate event, Business Interruption Insurance can also be a great way to heal and medicate everyone.
If a bad disaster hit your business, chances are you’re no longer capable of building a new office in that certain area because of future risks. Relocation is one of the steps that are done by Business Interruption Insurance so that your company will be able to move into a new clean, rural and safe environment.
Insurance helps protect and safeguard our businesses and it is really great to have something llike Business Interruption Insurance so that things will go smoothly and you will be content about your business’ safety.
Mark Aldrin Hipolito is a resident writer for Insurance Advisernet, one of Australia’s largest and most respected General Insurance businesses in Australia and New Zealand. In line with the association’s goal, Mark writes to raise awareness and inform future business owners as well about the insurance policies that they may consider.