Property damage is an obvious risk from natural disasters like hurricanes. Less obvious is damage that can be caused by business interruption. Even if the commercial building for the business is not damaged, the lack of electricity for extended periods, after a natural disaster, can cause such a severe loss of business revenues that the business may fail unless it has adequate business interruption insurance.
The good people at JC Demo Insurance Group, serving Matthews, NC, and the surrounding area, know very well about the impact of hurricanes on the businesses in the state of North Carolina. They highly recommend that all businesses conduct a commercial insurance review to make sure they have adequate coverage. Business interruption insurance is an important part of their overall protection.
How does business interruption insurance work?
Business interruption insurance is meant to cover the expenses that continue during the period when a business is forced to stop operations. Some expenses are variable and can be paused while the business is not operating. Other expenses are fixed and continue if the business is operating or not.
Work with your insurance agent to separate the business expenses into those two categories to make a monthly estimate of those expenses that must be paid and cannot be stopped.
The next part of the estimate needed for adequate coverage is making an educated guess about how long a business will be forced to stop operating. Minor emergencies, such as street repairs that block customers from being able to enter the facility, are less challenging. Major natural disasters are able to stop a business from operating for many months.
It is bad enough when the area where your business is located suffers severe damage caused by a natural disaster. A wise business owner has business interruption insurance so they do not also lose their business in the aftermath. Contact your agent at JC Demo Insurance Group in Matthews, NC to get a quote.