A BUSINESS OWNERS WORST FEAR

　

 

A BUSINESS OWNERS WORST FEAR

An individual usually starts their own business for several reasons, however one reason that always seems common in everyone’s goals is to make money. So what would happen if you open a restaurant, are successful, and suddenly the kitchen catches fire which causes extensive damage in the restaurant. Hopefully, you would have fire insurance in place to help rebuild and replace the building, as well as your contents and equipment inside, but what would happen to the income that you were used to receiving?

Once the rebuilding or repairs start, and you cannot operate your business until these things are completed, how will you pull through financially? 40% of businesses do not reopen after a disaster such as a fire and another 25% fail within one year of reopening, which causes major concern to an owner who cannot open his/her business.

Business Interruption Insurance, also known as Business Income Insurance, covers for this loss of income that a business suffers after a disaster. This type of coverage can be added into your Property or General Liability policy and it generally includes coverage for profits, fixed costs or operating expenses, as well as some coverage for a temporary location pending on the policy form.

As a Business Owner, when starting a business, you generally automatically think of Property insurance or General Liability insurance to protect the tangibles, so don’t forget to make sure your income is covered as well.