Businesses can be forced to close when a natural disaster such as a tornado strikes or when a pandemic such as the current COVID-19 causes sudden and serious business interruption. These unfortunate incidences often leave the building and assets of the business so damaged and unusable that it is very difficult for the owners to start making a profit again.
To protect one's business from suddenly being forced to shut down due to such unfortunate circumstances, a business owner should register for business interruption insurance before they first open their services to the public. Business interruption insurance is vital and hiring an insurance lawyer in Florida to help a person through the selection and application process is one of the best ways to ensure that a person ends up selecting the best package for the best price.
With regards to COVID-19 related losses, one's business interruption insurance may, or may not, cover their losses. The ability of a person to make a claim depends on the specific policy of the company they signed up with.
Generally, business interruption insurance covers:
- Lost income following any event that disrupts the normal flow of business
- The revenue/profit that would have been earned
- Operating expenses such as electricity that continue despite the loss of business
- The cost to move to a temporary location until the damage is taken care of
- Training costs that would accumulate after employees are replaced after the incident
Applying for business interruption insurance should not be left until the last minute. Of course, a person will not be eligible to apply and benefit from this insurance after the actual disaster strikes. Getting in touch with a legal professional to help with the application process as soon as one opens for business is the best way to ensure one's revenue will be protected in the long run.
Do I need to apply for Business interruption insurance?
Though other forms of insurance protect one's assets and one's employees, they often fail to cover one's revenue, and that's what business interruption insurance is for. With this insurance, a business owner ensures that money continues to flow despite the interruption in business.
Keeping one's business running in the event of a serious natural disaster-or pandemic- can be incredibly difficult. When businesses are forced to close their doors due to the risk of spreading the virus, and customers are unable to shop because of instructions to self-isolate, business interruption insurance can prove to be incredibly useful to help their revenue continue to flow regularly.
Business owners who have business interruption insurance should get in touch with an insurance professional as soon as possible to discuss whether their policy covers their COVID-19 related losses.
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