If your small business operations were interrupted, would you be able to bounce back right away? For 9 out of 10 small businesses, the answer is no.
According to FEMA, being forced to close for just five days can cause the majority of small businesses to fail within a year.
But if your business were to face a serious interruption—due to fire, flood, break-in or natural disaster—it could be weeks or months before things were back to normal.
Interruptions like these pose a significant risk to today’s small businesses, which is why many businesses manage that risk by purchasing business interruption insurance.
Common Business Interruptions and Protections
While interruptions vary from business to business and region to region, common business interruptions include:
- Burst pipes
- Structural damage
- Natural disasters
It can take weeks or months to recover from interruptions such as a burst pipe, significant property damage, hurricane or fire.
While property insurance pays for any repairs or replacements caused by a covered peril, it often does not cover ongoing expenses that still need to be paid during business downtime. That’s why many business owners turn to business interruption insurance.
Business interruption insurance protects your business from a loss of income caused by a partial or complete interruption in normal business operations. It can help you replace lost income, cover payroll and pay bills in the event of a serious interruption.
Typically, business interruption works in conjunction with your property insurance coverage. After a business has experienced a loss and filed a claim against their property insurance, business interruption coverage can be used to cover financial losses that are a direct result of the interruption.
Business Owner’s Policy with Business Interruption Coverage from Lockton Affinity
With coverage from Lockton Affinity, Business Interruption insurance is included in our Business Owner’s Policy. By combining Property insurance and Business Interruption coverage in one policy, small businesses like yours receive several benefits:
- Convenience — One policy containing two coverages means less maintenance for your business during renewal time.
- Cost-effectiveness — Bundling policies saves money and ensures you’re not paying for double coverage.
- Comprehensive coverage — Because these two policies are part of the same bundle, you know you have the exact coverage your business needs without being over- or under-insured.
If your business is one of the 9 in 10 businesses that would face significant challenges from an unplanned interruption, you need Business Interruption insurance from Lockton Affinity. Contact our dedicated representatives today to get started.