Should your insurance cover your business closure?

As the owner of a small business or franchise, you likely invested in multiple kinds of insurance before you ever began operating the company. You may have a general liability policy, a premises liability policy and a business interruption insurance policy.

When something predictable happens, you can then turn to that insurance to protect the company itself and the investment you made in it. Business interruption insurance can help your company cover basic bills if you have to cease operations unexpectedly.

What will your business interruption insurance policy cover?

Your policy protects you from snowballing expenses. If a seismic event or gas main issue forces the temporary but prolonged closure of your facilities, your business takes two financial hits.

The first is that the company cannot open its doors to manufacture products or sell items to the public. The second is that costs continue accruing every single day. You have to pay for your insurance policies and your premises, as well as your employee’s salaries and benefits. Exactly what you can cover depends on how much protection you purchase.

Every business interruption insurance policy is different, but most of them apply in scenarios where you have no control. Extreme weather, acts of war or terrorism and catastrophic infrastructure failure are among the reasons why you could make a claim against your business interruption insurance policy.

Delayed claims of this necessary coverage could affect your company’s ability to stay solvent and maintain its premises. If you reviewed your policy documents and believe your circumstances fall under the umbrella of your coverage, you may need assistance when the company won’t cooperate with you.

Knowing your rights while handling a large insurance claim or dispute can help your business connect with the coverage it needs to keep paying the bills.



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