That's a scary statistic, especially for small business owners.
You probably have insurance for you vehicles, your equipment, and even your employees - but what will you do after a natural disaster hits and you cannot reopen for weeks or even months? Without income being generated, what will you pay the bills with?
That's why we at Allison Insurance Group strongly recommend Business Interruption with Extra Expense coverage. It covers 1. The loss of net income and 2. Continuing normal operating expenses.
Why? Because some business lost is lost forever. If you cut hair and are forced to close for a day, you can make up most of your appointments the next day. But those restaurant owners understand that no matter how hungry a customer is, they don't come in today to order the lunch they missed yesterday.
In the case of a Business Interruption loss, you as the insured do have responsibilities - you will have to respond to document requests quickly and make certain to complete them entirely. For example, if you close for the month of September, an adjuster might request your profit statements from August to project how much net income you have missed.
The Extra Expense aspect covers just that - extra expenses. Let's say you pay $900 in rent a month for your storefront. If you are forced to relocate for a month to a location that costs $1,200 a month, Extra Expense coverage will pay that additional $300 per month. Let's look at that from a slightly different angle, if you are still required to pay your $900 rent, even though you are forced to relocate to the $1,200 building for a month, then Extra Expense coverage will pay you that entire $1,200 of extra expenses.
Will you be one of the 40% of businesses that will never reopen after a catastrophic loss? Are you prepared for the natural disasters that you cannot control? If you're uncertain, call your account manager today at 731-668-8444.