As various types of business are seeing drastic improvements this summer compared to last, there has been much cause for celebration. It always feels great to look at monthly reports, see things ticking upward, and sense true stability during a long-awaited resurgence. As various entities take a look back at the year behind us, there are many questions about the potential for protection against loss if they find themselves unable to operate in the future.

While you are taking a close look at different types of Business Interruption Insurance, important questions should be asked about the coverage of financial loss if you find yourself in a situation where it is not possible to keep the doors open and checkouts humming. This ultimately depends on what the terms of the policy are, and how they are interpreted by the courts. Business Interruption Insurance is now widely considered a routine practice, as the future could remain uncertain.

What Exactly Can You Count on Being Covered?

This very unique type of insurance policy can help a business remain afloat if it is forced to temporarily cease operating. They provide income replacement that you can apply to day-to-day operating expenses and overhead costs until the time comes to begin operating again. Currently, around 40% of business owners hold some form of this coverage. Typical candidates for this type of policy are usually businesses that average around 100 employees or less, and about $5 million in annual revenue. 

What an owner finding themselves under sudden duress can expect to see covered is property, liability, and business income. You will benefit from coverage that results in losses from damage to your business property, as well as personal liability claims against you if you temporarily are shut down. During these days of rising uncertainty, you can expect to be covered from damage caused by riots, vandalism, or civil unrest, with some policies not providing this benefit. 

When a Pandemic Comes Into Play:

Last year when the entire world unexpectedly dealt with the arrival of the COVID-19 virus, more than half of businesses were not expected to be able to bounce back and open their doors again. It’s important to note that your business interruption insurance will only cover the past year’s losses (caused by the virus) if your policy specifically lists coverage for pandemics.

Now is the time to set up a detailed review of your policy holdings with Alexander Insurance. We can also provide information about whether or not your state has legislation that will retroactively apply coverage for the period during which your business was affected, even if it was a government-mandated shutdown. Here is where the food and hospitality industries are particularly vulnerable and could suffer at a moment’s notice. If you are covered, the next step involves providing details about the extent of your losses, along with documents that clearly provide a snapshot of how much you lost due to being shut down. 

Bring in The Experts For The Final Word:

If you have not already done so, now could be an opportune time to consider Business Interruption Insurance. All of us at Alexander Insurance Agency of St. Charles can keep you updated frequently on legislative changes, and review your current policies to see if you will be prepared if recovery from the pandemic takes a few steps back. When it comes to profit loss decisions, it can affect your ability to triumphantly open your doors once again, and that’s why we are here for you: scrutinizing every detail will allow you to be confident in the utmost even during uncertainty!