Table of Contents
- Why do I need business interruption insurance?
- What is the average cost of business interruption insurance?
- What is not covered by business interruption insurance?
- What are business interruption risks?
Why do I need business interruption insurance?
Business interruption insurance is a type of insurance that provides financial protection to businesses in the event of a disruption to their operations. This type of insurance helps businesses recover from the financial losses caused by events such as natural disasters, fires, and other unexpected occurrences. Business interruption insurance can help businesses stay afloat during difficult times and help them get back on their feet quickly.
What is the average cost of business interruption insurance?
The cost of business interruption insurance varies depending on the size of the business and the type of coverage that is chosen. However, the average cost of business interruption insurance is between 0.5% and 1.5% of the total annual revenue of the business. For example, a business with annual revenue of $1 million would pay between $5,000 and $15,000 for business interruption insurance.
What is not covered by business interruption insurance?
Business interruption insurance does not cover losses caused by events that are outside of the control of the business, such as war, civil unrest, or government action. Additionally, business interruption insurance does not cover losses caused by employee dishonesty, criminal activity, or intentional damage to the business. It is important to understand what is and is not covered by business interruption insurance before purchasing a policy.
What are business interruption risks?
Business interruption risks include natural disasters, fires, power outages, and other unexpected events that can disrupt a business’s operations. Additionally, businesses face risks from cyber-attacks, data breaches, and other cyber-related incidents. Business interruption insurance can help businesses recover from these events and protect them from the financial losses that can result.