A flooded street with traffic cones, and a detour sign for pedestrians
November 1, 2019

Signs You May Not Have Enough Business Interruption Coverage

Natural disasters, vandalism, fire, and many other factors could impact your business unexpectedly. How long could you survive a full or partial shutdown? Days? Weeks? Months?

At Acrisure, we understand that losing access to your business hurts the bottom line, so — together with our Agency Partners — we provide a range of business interruption insurance options. By evaluating your specific risk factors and drawing upon the global Acrisure Agency Partner network, we can develop coverage to keep your business afloat if disaster strikes.

Business interruption insurance replaces the loss of income due to suspended operation as a result of prescribed events and factors. Unlike property insurance which covers physical damage and associated costs, this coverage is intended to recoup lost revenue.

Consider Your Risks

Business interruptions affect each business differently depending on the nature of the business, its location, current economic conditions, and several other factors. If your business could be affected by one or more of these tell-tale risks, we advise you to consider business interruption coverage.

    • Volatile Location – The possibility of natural disasters, high rates of crime, aging municipal infrastructure, and political instability could all halt your business. Whether a result of nature or human interference, if the location of your business is unstable, so is your ability to stay open.
    • Tight Interdependency – While being a part of an interconnected network of businesses or supply chains can increase your company’s productivity, the same dependency can create cascading problems when issues arise. If you rely on an outside source for parts, labor, or services you need to prepare for possible repercussions.
    • Critical Equipment – When vital pieces of machinery are damaged, wait times for repair or replacement may freeze your productivity. Beyond insurance policies written to repair and replace such assets with physical insurance, business interruption coverage can be used to offset lost production earnings.
    • Financial State – Bills don’t stop just because business is on hold. Depending on your business’ success and age, business interruption coverage can mean the difference between bouncing back and throwing in the towel.

Audit Your Policy

Depending on the length and severity of a shutdown, business interruptions can eat away at a company’s bottom line. Would your business be able to weather the storm?

Thoroughly reviewing your current policies and unique risk factors is the best way to determine if you have adequate business interruption insurance, but you don’t have to go it alone.

Combining data and historical factors, our team can audit your current policy. By assessing your risk level, valuations and coverage needs, we get to know your company inside and out to develop holistic solutions.

Here to Help

Consider Acrisure your partner in all things insurance. For concerns about business interruption insurance and more, we are eager to assist you. Contact us for a personalized risk assessment today.