Business interruption insurance is just as vital to a business as insurance used to cover employees, stock, plant and equipment. This is because if an unforeseen circumstance like a fire, storm, burglary or an earthquake happens, not only will the people be hurt or the property damaged have the needed coverage, but so will the business itself, as it would likely endure some loss in income or profit due to a halt in or decrease in the operations.
While most owners likely have business interruption insurance as part of their overall property policies, it seems many still don’t understand what exactly it covers for them. As discussed in an article published by Mondaq last April 17th:
What happens when a hotel suffers property damage, whether by natural disaster or man-made accident, and is forced to close some or all of its rooms, amenities or services? It is important to understand how insurance can protect you from the resulting financial loss. In addition to potential recovery for property damage from your property/casualty policy, you may be able to recover lost revenue from your business interruption coverage. If your operations are disrupted, whether completely or partially, the language of your policy will determine if, and for how long, your insurance company will cover such loss.
Your insurance should cover income loss not only when operations are completely shuttered, but also when your business is partially suspended.
Simply put, your business may have to endure some sort of disruption to its operations, and you may miss out on possible claims because you fail to realize that the type or magnitude of the interruption you are experiencing is part of the coverage you have.
While it is quite understandable if one were to not be fully knowledgeable of every detail of their business insurance, it is imperative to at least have a reliable expert to discuss business continuity insurance in the Sunshine Coast with. By turning to a trusted professional at the prior to the onset of any business interruption, possible claims can be successfully pursued faster, and the business won’t have to reach from its own funds to cover operational losses.
Sunshine Coast insurance brokers like Insuring the Product are known to provide useful information regarding different insurance products, constantly assessing insurance providers to make sure business interruption insurance continues to remain competitive and comprehensive. With their help, business owners are assured their policies are there when they are needed.
(Source: Insurance Recovery For Business Interruption — And Slowdown, Mondaq.com or Anderson Kill Hospitality Alert Spring 2014)