There are so many different types of insurance policies available for businesses today, making it a challenge for companies to know what they really need and what they don’t.
One type of insurance plan that has become very popular is a business interruption plan. When you consider the interruptions that many businesses have experienced this year because of the pandemic, it is not hard to see why this sort of policy is essential.
With that in mind, we will take a look at how many businesses have these policies and what they cover.
What does business interruption insurance cover?
Before we delve deeper into how many businesses have this policy, it is vital to explain what it covers so you can understand why this is a beneficial plan.
While there are many different causes of disruption at any business, floods and fires are two of the most common. No one expects these disasters to happen at their company, but they could happen to anyone, and if you don’t have insurance in place, it can be impossible to come back from this sort of disaster.
You may think that flood claims only happen when there is a huge natural disaster, but this is not the case. In fact, many flood claims involve a rooftop water tank collapsing or a burst pipe, which has caused a tremendous amount of damage by the time anyone arrives at your business premises.
You can replace your stock, but your office is going to need plenty of time to dry out. In fact, in cases of severe floods, it can take as long as six months for you to be able to return to your premises.
Because of this, you need to make sure that you have insurance in place that can cover all of the costs associated with a disruption. As you can probably gather, there are a lot of expenses involved with flooding. This is even more so the case if you have specialist machinery that is very difficult and expensive to replace. Many small arts and crafts related businesses would be devastated if their entire stock of hand-made, unique pieces were suddenly water damaged! How much time, effort, and revenue is at stake?
How many businesses have this policy?
While the exact figures are unknown, the truth is that not enough businesses have interruption protection in place. This means that many companies across the country are leaving themselves open to a potential disaster.
Numerous factors will determine whether or not this sort of policy is a necessity for you. This is why it always makes sense to work with an insurance specialist who can assess your business and your requirements. The specialist can give you business insurance quotes and help answer any questions you have.
So there you have it: an insight into business interruption insurance and the benefits that are associated with it. When you take all of these points into account, it is not difficult to see why this policy is pivotal for so many companies today.
If you need help choosing the best business interruption plan for your company, please do not hesitate to get in touch with LSI Insurance for more information. We would be more than happy to help you.