What would it cost to shut down your business for a day? Longer? That's what happened to one company when a car ran into a nearby power pole. The accident caused a power interruption that caused the business to have to shut down for a day - causing over $2,000 in damages thanks to the lost business.
Fortunately, the business in this case had business interruption coverage. The insurance company quickly paid the claim, and the business could pick up without skipping a beat.
Business interruption coverage provides you with cash to cover your operating expenses, cover your expenses and help you meet payroll if you have to close your doors because of circumstances you can not control. It's a separate kind of coverage from disability income, which covers the policy owner or beneficiaries' income. It is specifically designed not to put food on your table, but to preserve your business through a temporary interruption. Otherwise, even a small interruption of a couple of weeks to a month could well wipe out a years' profit in a narrow-margin business.
Stolen Business Equipment
One construction company foreman carefully locked down his equipment for the night before leaving the worksite. When he came back the next day, a $32,000 power shovel was missing. Not only was the company out $32,000 in lost or stolen equipment - the project came to a halt until they could get a replacement power shovel on the site - costing the company thousands of dollars more.
In this case, the company had an insurance policy protecting it against theft of construction equipment. What's more, the policy included coverage against theft that took place at the worksite, and not just from the company's own storage facilities. The insurer paid the claim promptly, giving the construction company the liquidity it needed to go buy a replacement power shovel immediately. Work resumed within just days.
Again, these examples aren't designed to scare anyone - just help you id identify where risk comes from for business owners, and help you identify the countermeasures and insurance coverage you need to protect yourself.