Business Interruption Insurance May Be the Key

What would happen if a fire, storm or major theft caused your business to shut down? How would you pay for your ongoing expenses without revenue from ongoing operations?  Sure, your property insurance will most likely cover the damage or loss, but it’s going to take time to repair your premises and/or replace your inventory and resume operation.

How will you pay your fixed expenses like:

  • Rent
  • Interest
  • Vendor Costs
  • Utilities

More importantly, how are you going to cover payroll? Will you be able to retain your staff during the shutdown, and how will your employees get along without a paycheck?

Of the businesses that suffer a major disaster, 40% never reopen. Of the 60% who do reopen, 1 in 4 of those will fold within 12 months. The major reason is the loss of income during the shutdown.

Business interruption insurance, also known as business income insurance, can be the answer. Business income insurance covers your fixed costs that incur during repairs to your business. It will also cover any increased costs you might incur because of the loss (having to rent a temporary storage space for your stock, for example).

While your businessowners insurance policy *may* provide some business income coverage, it may not be enough, and regular business property and liability insurance policies do NOT include business income coverage (generally).

Make sure your business operations, and revenue, are protected with business interruption insurance. Contact us today for a review of your current insurance program or for a quote.

In the meantime, here’s a short video that highlights the importance of business income insurance.


About Dawson Insurance

The first independent insurance agency in Dawson County, Dawson Insurance has a history of excellence since 1964. Located in Dawsonville, Georgia, we also offer unparalleled service and competitive quotes to personal and business insurance clients in Cumming, Gainesville, Alpharetta, and throughout the entire State of Georgia.

(The above article provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions, and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.)