What is business interruption insurance?

As a business owner, there are all sorts of insurance types for you to consider, but perhaps one of the most important is business interruption insurance.

There's just no telling when your company might find itself faced with an unexpected event. Your firm could suddenly suffer loss or damage as a result of a fire, flood or accident, so it can give peace of mind to know you're covered.

Many companies find it difficult to come back once they've suffered large-scale losses, which is why it's a wise idea to take out business interruption insurance.

Your insurer will pay out and cover you for any shortfall in your gross profits that might arise as you try to get back on your feet. This period might last several weeks or even months, during which time you could find it increasingly difficult to balance your books.

Business interruption insurance is ultimately about covering loss of profit, so you can focus on rebuilding your operations in the aftermath of a debilitating event.

One of the main benefits is that your firm can continue to operate as normally as possible. This reduces the need to lay off staff and make any other decisions that might be difficult to reverse further down the line.

You can also do whatever possible to ensure your company can meet orders and other demands from customers. Without this, you only increase your chances of losing clients as a result.

The cost of getting your business back up and running could run into thousands of dollars, but with this type of insurance in place, this is another concern you can put to the back of your mind.

Business interruption insurance should feature highly on any company's agenda, especially because you never know what could be around the corner.