Business Interruption Insurance Explained.

12/8/2022 (Permalink)

Business owners should consider having Business Interruption Coverage.

Business Interruption Insurance… explained.

When a commercial property is damaged, there is often a negative impact on the business(s) housed within the structure. Sometimes, the business interruption will last several days or longer and disrupt the company's income-earning capabilities. In some cases, the interruption to the business is more “costly” than the damage to the structure. That’s why many companies have Business Interruption Insurance for just such an emergency. The Forbes Advisor describes this coverage like this, “Business interruption insurance helps to replace lost business income if you cannot open your business temporarily due to a loss covered by the policy, such as a fire or theft. Let’s say a storm knocks a tree into the front window of your business. Business interruption insurance, also known as business income insurance, would cover costs of lost income to your business until the window gets repaired.”

If you do not have business interruption insurance, you may want to talk with your insurance agent. For more information on the topic, you can also review the Forbes Advisor article.

In the past, SERVPRO of Yuma has worked on commercial property damage losses where business interruption insurance is in effect. In these cases, our responsibility is to perform the cleanup and restoration as quickly as possible so the business can return to work as soon as possible. Various studies have examined the reasons why some companies with adequate insurance go out of business after experiencing a disaster. The loss of customers and sales is a significant factor. The findings made clear that the longer the business is interrupted, the more difficult it will be for the company to recover and survive. Time is of the essence! That’s why, at SERVPRO of Yuma, we will work 24/7 to help restore the commercial property. Whenever possible, we will suggest and implement ways to keep at least part of a damaged company open and working.

Research about the effects of property damage on business recovery also reports that businesses with emergency-ready plans in place before the damage occurs have a substantial advantage in the recovery process and long-term survival.  SERVPRO of Yuma offers a customized emergency-ready plan.  We would be pleased to discuss making a plan for your business, and it’s free!

SERVPRO of Yuma contact information:           928 -247-1180