Insurance Options
Is Business Interruption Insurance Important?
When thinking of the type of disasters to insure a business from, most people would normally choose fire, windstorms and heavy storms among others. In the process, they tend to forget that during the time that any of these calamities would have hit their business premises, they will not be working hence they will lose a lot in business revenue. A business interruption insurance is specifically meant to cover a business from all the losses that may be incurred during the period that it is not in operation.
This insurance package at mumby.com is not always sold on its own, rather, it is availed as part of a property insurance policy or a package policy. After a disaster, any business that has to close down so that the premises can undergo renovations will lose a lot to the competitors. This therefore calls for a quick resumption to the business operations.
If you are wondering what you stand to benefit when you take this business interruption insurance policy, first of all, you will be compensated for the loss of income during this particular period. The insurance will calculate the revenue that you might have earned while in operation and compensate you for that. You will also be paid for any other costs like electricity costs and water bills that might accumulate while you are not in operation.
When you take this policy, always make sure that the limits of the policy taken are sufficient to cover for more than a few days. Your business may be out of operation for a number of days when renovation is taking place and so you need to take the right policy. You should also remember that it takes about 48 hours before the insurance becomes operational.
The price for a business interruption and critical illness insurance cover normally varies depending on the type of business it is supposed to cover. Another factor that also determines the value of a policy is the amount of risk associated with the business. For example, you would be charged more for a business interruption insurance on a restaurant than you would be charged on a real estate agency. This is because a restaurant is more prone to disasters that are caused by fires that a real estate agency. You should therefore check with the insurance company to determine the amount of cover that you are given and the monthly instalments that you are supposed to pay. Once you think that they are favourable, you can go ahead and take the cover.