When preparing for the worst, many companies automatically think about damaged and lost property. In the aftermath of a fire or other natural disaster, it’s important to consider what’s been lost and how that affects your ongoing work and future obligations. You’ll need to notify employees, clients, and other business partners that might be impacted by these losses. While property insurance can cover damages to your building and equipment, what will you do about lost income and other costs associated with the interruption to your work?
Understanding Business Interruption Insurance
The time between a covered event and recovery can be significant. Between cleanup, repair and replacement of lost items, and reconstruction, your ability to make an income may be limited. Business interruption insurance can cover the following:
- Expenses for temporary relocation
- Renting temporary equipment
- Providing income while rebuilding
A business interruption policy can help you meet financial obligations for a set period of time as you go through the recovery process.
Taking a Complete Approach
As a responsible business owner, you should have a disaster recovery plan in place ahead of time. Being prepared with a plan and the right insurance coverage is good for you, your company, and everyone you do business with.