When organizations encounter unexpected disasters, avoiding operational disruptions or temporary shutdowns may be challenging, and even brief closures can carry costly consequences.
The first line of defense should always be a robust business interruption contingency plan. One critical aspect of these plans is business interruption insurance coverage. These policies can offer much-needed financial protection when an organization’s usual business activities are disrupted due to covered perils like fires, theft, vandalism, heavy wind, hailstorms, and more.
Sometimes called business income insurance, this coverage can be purchased as a supplement to commercial property insurance or secured through a business owner’s policy—a bundled insurance package featuring property and liability coverage.
For those looking for additional protection from business interruptions, here are three things to consider when securing coverage:
- Perform a risk assessment: An organization’s business interruption exposures and related coverage needs will vary based on its industry, location, and operations. As such, organizations should carefully review their specific business interruption risks and analyze the potential impacts of temporary closures or shutdowns to help determine sufficient coverage levels and essential policy features.
- Conduct policy reviews: As an organization’s business interruption exposures change and evolve over time, its coverage should follow suit. By conducting routine policy reviews, organizations can make updates as needed and ensure their coverage remains suited to their unique risks, thus minimizing the likelihood of substantial out-of-pocket costs following unexpected disasters.
- Consult the experts: Employers can reach out to trusted insurance professionals to better understand their business interruption insurance offerings and identify any ongoing coverage gaps. In doing so, organizations can decide whether it’s necessary to secure additional protection and select additional coverages and extensions that are most relevant to their operations.
EHD Experts are Standing By
Business interruption insurance can save millions of dollars in missed revenue and provide peace of mind during an unexpected disaster. EHD has placed countless business interruption policies across industries. If you are looking to brush up on your existing policy or purchase additional coverage, reach out to us today to start a conversation.
