Over the next four weeks, Lynch Insurance Brokers will walk you through the reasons you should protect the long-term viability of your business with a Business Interruption insurance policy, along with what you need to know about it and how it works.
BRIDGETOWN, Barbados, Thursday November 2, 2017 – Whether it’s for your home, car or personal health, we take out insurance policies to help us rebuild or recover from some unforeseen circumstance or incident. In the case of your business however, there’s a bit more you need to take into consideration.
When a home is damaged or destroyed, the occupants would probably be able to stay with family or friends until everything is rebuilt. An individual can rent a vehicle in the case of damage to, or loss of their car; and they can also remain at home on medical leave with pay, while recuperating from a health issue.
When it comes to your business, how do you account for the lack of earnings or revenue; the inability to pay staff; or the loss of business contracts due to the incapacity to provide a service to clients? After a fire, explosion, natural disaster, cyber-attack or machinery breakdown, your operations will be slowed if not completely halted; and this is where your business will be at its most vulnerable.
A Business Interruption insurance policy provides you with coverage for financial losses arising from an insured peril causing insured damage to an insured property. It also makes it possible for you to meet any contractual obligations which you might have undertaken prior to the disruption, by providing for extra expenses and additional costs which you may incur to continue operating, such as renting a temporary facility.