Most businesses have coverage to rebuild or repair damage from a fire or other force of Mother Nature. Yet business owners will often overlook the impact such disasters have on revenue.
A business that is forced to shut down operations for weeks or months could lose tens of thousands of dollars in lost sales. Meanwhile, customers might turn to a competitor for services. According to the Insurance Institute for Business and Home Safety, at least 25% of businesses that close because of a disaster never reopen.
Business interruption insurance can bridge the gap and provide an income replacement that can be used to restart operations, pay salaries and other expenses that still occur even though the business isn’t operating.
The type and amount of business interruption insurance a business needs should be thoroughly evaluated by a risk management professional, according to Dan Bukaty, president of Bukaty Property & Casualty Services.
“It’s important to align your business interruption coverage with your broader commercial insurance policies. For example, if you don’t have flood protection, your business interruption coverage wouldn’t compensate you for income lost due to a flood.”
To determine what type of coverage is appropriate for your business, contact Dan Bukaty at dbukaty@bukatyagency.com or call 913.951.2400.
