Business Interruption Insurance-Do I Need That

3/1/2022 (Permalink)

A recent survey showed that 40% of small businesses have no insurance, and 75% of businesses are underinsured. Many small/medium businesses do not have insurance to cover expenses caused by a natural disaster or lawsuit. If the unwanted occurs, the restoration time that follows can hurt business owners even more.

Restoration is defined as the length of time or duration needed to repair, rebuild, and replace damaged building properties. Business interruption insurance will help provide your company with compensation to avoid loss of income in the event you experience damage to your building or equipment during a disastrous event. This support can buy your business precious time needed to get back up and running, without having to close your doors forever. It will even pay you profits (or, for nonprofits, net earnings) that you would have earned if there had been no loss.

As a business owner, it is ideal for you to understand the importance of each insurance policy format including the terminologies and practicality of the corresponding norms.

This piece of content provides a snapshot of incidents and insurance claims that business owners across the United States experienced from 2016 to 2019.

Natural disasters

In 2019, natural disasters inflicted losses up to $25.5 billion in the United States. While severe thunderstorms accounted for 80% of these losses, cyclones and winter storms accounted for 8 % of total insured losses.

Source: https://www.iii.org/fact-statistic/facts-statistics-us-catastrophes

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