Tips for Securing Business Interruption Insurance

Business interruption insurance can make all the difference in helping organizations stay resilient amid unanticipated disasters and reduce the fallout stemming from related disruptions.

Consider these best practices for purchasing and maintaining adequate business interruption insurance:

• Perform a risk assessment. An organization’s business interruption exposures and related coverage needs will vary based on its industry, location and operations. As such, organizations should carefully review their specific business interruption risks and analyze the potential impacts of temporary closures or shutdowns to help determine sufficient coverage levels and essential policy features.
• Consult the experts. Employers can reach out to trusted insurance professionals to better understand their business interruption insurance offerings and identify any ongoing coverage gaps. In doing so, organizations can decide whether it’s necessary to secure additional protection and select additional coverages and extensions that are most relevant to their operations.
• Conduct policy reviews. As an organization’s business interruption exposures change and evolve over time, its coverage should follow suit. By conducting routine policy reviews, organizations can make updates as needed and ensure their coverage remains suited to their unique risks, thus minimizing the likelihood of substantial out-of-pocket costs following unexpected disasters.
• Maintain proper documentation. When disruptions occur, it’s vital for organizations to ensure detailed recordkeeping protocols and maintain proper documentation regarding the associated losses. Providing these records to their insurance carriers can help organizations promote a smooth claims process and receive timely payouts, allowing for continued financial stability and operational success.

Contact us today to review your business insurance policies to see if business income and extra expense coverage is beneficial to your business.