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Monday, 13 February 2012

The Importance of Business Interruption Insurance

As a business owner, you probably have some form of property insurance or another. Ensuring that your business is protected against fire, flood and other perils is simply part of doing business -- you wouldn't want to leave your life's biggest investment exposed to such risks!

What many people tend to forget, however, is that claims are not processed overnight. It may take weeks before your place of business is repaired and fully operational again. In the meantime, you could lose thousands of dollars in profit and may also have to move to a temporary location to resume business, which will incur rental and moving costs. Finally, there may be additional expenses you will be paying while your business is closed down, such as property tax and mortgage payments.

Business Interruption Insurance covers you for all of these. You will be reimbursed for the lost profits and the additional expenses you incur moving to a temporary location, and any other expenses you continue to pay to maintain your damaged or destroyed property. This is not only important from a fiscal perspective, but also in terms of customer service. If your place of business is destroyed, you will want to ensure that you don't lose any customers in the interim -- knowing that a move to a temporary location will be covered means you can continue to serve your customers without fearing a serious financial loss for doing so.

As an intelligent business owner, Business Interruption Insurance should certainly be on your radar. For some businesses, a week or two of lost profits can be a serious detriment to the overall bottom line. Give yourself the peace of mind you deserve by investing in Business Interruption Insurance!


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