Blog

Oct
24
Considering Business Interruption Insurance

California is one of the key earthquake centers of the United States and, as such, business interruption insurance should be considered by those reviewing the coverage in their business insurance California package. Many business owners may think that property (or earthquake) insurance will give them coverage in the event that they have to shut down for a period of time following damage caused by a quake – but that isn’t so.

Property insurance will only financially protect the company for property damage. There are ongoing bills and wages to be paid, and the question of the loss of revenue. This is where business interruption insurance may be beneficial. It provides coverage for these costs and may help to financially protect the firm against loss of revenue while it is forced to close temporarily to rebuild.

The Insurance Information Institute (III) advises that up to 25 percent of firms that are forced to close down due to an event such as damage from an earthquake never reopen. Taking out a form of business interruption coverage as part of your business insurance California package may well be the difference between successfully rebuilding and being forced to close your doors altogether. For more information talk to one of our agents today.