Do I need business interruption insurance for my Atlanta business?

If you have to close your business temporarily, business interruption insurance can help.

If you have to close your business temporarily, business interruption insurance can help.

Life is full of unexpected surprises. As a business owner, you might dread a surprise that causes you to close temporarily. If you ever have to close your business because of a natural disaster or another interruption, it’s crucial that you get your business running as quickly as possible. Your reputation – not to mention your income – could suffer the longer you stay closed. But there’s business insurance that can help you in the event of a temporary closure – business interruption insurance. Let’s take a closer look at why your business may want to consider it.

What is business interruption insurance?

Business interruption protects your business from closures resulting from things like natural disasters, equipment damage, and vandalism. The goal is to minimize the financial loss to your business if you have to shut down for a time due to a covered loss.

What is covered by business interruption insurance?

Business interruption insurance covers many different losses that result from having to close your doors. The specifics depend on your policy, which is why you need to make sure to go over the coverage offered very carefully.

Lost revenue:

If you’re temporarily closed due to a covered loss, business interruption insurance will provide you with the earnings that you would have made if your business were running normally. Lost revenue due to a forced closure is often devastating to small businesses, many of which never open their doors again after a disaster. Remember, property insurance only covers the cost of the physical things that were lost or damaged (the building and its contents.) It won’t help you out with your lost income. That’s why business interruption insurance an important thing to consider when you’re creating a disaster plan for your business.

Relocation expenses:

If it’s not possible to use your premises to run your business, you may need to move to a temporary location to keep things rolling. Business interruption insurance may help you with the costs of relocating and your rent and moving costs may also be covered, depending on your coverage.

Wages of your employees:

Your employees would greatly appreciate being paid during your business’s misadventure. Business interruption insurance may help you continue to pay your employees and ensure that they stay with your company by helping you out with payroll.

How do I get business interruption insurance?

Business interruption insurance can be added to your property insurance or included with your business owner’s policy (BOP.) Keep in mind that these policies can be complicated, so you may want to enlist the help of a trusted, qualified insurance advisor to guide you through the process so you can rest assured that you have the insurance you need.

How much business interruption insurance do I need?

You should plan to get enough insurance to cover your business for a good amount of time. You don’t want to run out of insurance when you’re in need.

How much does business interruption insurance cost?

The price of the coverage varies from business to business since no two companies are exactly the same. Some of the factors that influence the cost of business interruption insurance are:

  • Your business’s location
  • The type of work you do
  • How easy it would be for you to work out of a temporary location

Since we don’t know what the future will bring, it’s important to make sure that you plan for a variety of disasters. It’s crucial that you have cash flowing in while your business is closed, and business interruption insurance can help with that. You can secure your business’s future by protecting it with the right business insurance. You might want to consider business interruption insurance to ensure a certain amount of continuity if you ever have to close your business for a short time.

Do you need some quotes for business insurance? We can help you with that. We know that you’d love to save some money on your rates, and we love to help business owners just like you do just that! All you have to do to get started with your quotes is fill out our online form or give us a call today. Our team of agents is here to help.

What’s a business owner’s policy and can I get one for my Atlanta business?

A business owner's policy, or BOP, combines three different types of business insurance.

A business owner's policy, or BOP, combines three different types of insurance.

Have you ever seen one of those commercials for a hair care product that claims it’s shampoo and conditioner, all in one? Believe it or not, there’s an almost-equivalent for small-to-medium sized businesses when it comes to business insurance. It’s called a business owner’s policy, but since no cool coverage is complete without a nickname or acronym, it’s called a BOP. Basically, a BOP is handy to have because it combines several coverages into one convenient policy. You can get the coverage you need for your business in a simple, neat package – and it’s way better than 2-in-1 shampoo/conditioner.

Let’s dig deeper into this insurance mystery.

What does a business owner’s policy include?

There are three main coverages that a BOP can bundle together for your insurance convenience. Those coverages are…

1. Commercial property insurance.

What it does: Commercial property covers losses that happen because of common perils, like fire. It can cover you for your office equipment, furniture, inventory, machinery, raw materials, computers and other such essential business items. Plus, you know, the building itself.

2. General liability.

What it does: General liability is your “slip-and-fall” insurance. It covers your legal responsibility if your business causes harm to someone else, up to your policy’s limit. It will usually cover attorney fees for defending your business in court and the medical fees of anyone to whom your business caused bodily harm. It can also help in the event of a property damage claim.

3. Business interruption insurance.

What it does: Business interruption puts lost income back in your business’s pocket if you get hurt by a covered disaster that causes you to close temporarily. While property insurance helps you rebuild your business, BII helps you make sure that there’s still money in the bank when you have your grand reopening. It reimburses you for lost income.

Together, these coverages form the foundation of a small business insurance plan. Of course, they don’t cover every disaster or loss that could befall your business, so you may have to consider getting additional coverages if necessary.

Is my business eligible for a business owner’s policy?

Now, not every business is a candidate for a BOP. As we said before, BOPs are most appropriate for small to mid-sized businesses. Apart from that, there are a few checkmarks your business may need to meet before being stamped for BOP approval.

  • A physical location (whether it’s your home or premises – you may be able to insure a home-based business with a BOP)
  • Property that can be swiped (think product, cash, furniture, digital property, etc.)
  • Risk of lawsuits
  • Fewer than 100 minions employees
  • Fewer than $5 million in sales annually

Aside from these basic qualifications, there are a few other things that a carrier will consider before declaring you BOP-worthy. You may or may not be BOP-able depending on your type of business, the size of your main location, your revenue, and the class of business you are. It might seem like a lot of hoops to jump through, but it’s all in the interest of making that your business has the coverage you need.

How much will a BOP cost?

The premiums for BOPs depend, of course, on a few things. Your business’s eligibility factors play a part in your insurance rates. The financial stability of your business does, too. The building itself also gets considered, as do security features and fire hazards. The general rule of thumb for insurance is the more risk you have, the higher your rates. Insurance companies are highly allergic to risk, remember.

Pro tip: You might qualify for a discount if you have a security system. However, there are a few things you should know before hiring a company to install a commercial security system.

While insurance rates vary from business to business, the bottom line is that it’s important to make sure that you have enough coverage for your business and that there are no gaps in your insurance. That might mean adding some extra coverage to a business owner’s policy or forgoing a BOP entirely in favor of getting bigger policies.

BOPs are great when it comes to protecting small businesses. If you’re BOP-able, you get to enjoy commercial property, general liability, and business interruption insurance all bundled into one convenient policy. It is, however, important to consider that you may need to add coverages to your business owner’s policy. If you think your business might be a candidate for a BOP, congratulations! Insurance just got a whole lot easier.

Want to get a free quote on your business insurance? BOP or no BOP, we’d love to help you find the insurance your business needs to protect it from the risks you face every day. We’d love to help you save on said insurance, too. To reach one of our friendly agent-folk, all you have to do is fill out our online quote form or give us a call today. Then we can help you get started with getting your insurance!