Business Interruption Insurance in New Braunfels, TX
Businesses typically rely on consistent operations and predictable situations to adequately forecast revenue and expenses and responsibly plan for the future. Unfortunately, even the most responsibly run companies in relatively low-risk sectors may eventually need to deal with unexpected delays or disruptions arising from accidents or other unforeseen incidents. In such situations, business interruption insurance may be of paramount importance.
What Is Business Interruption Insurance? 
Also known as business income insurance, this type of coverage can be an essential pillar of many companies’ risk management and loss control efforts. Many incidents may have long-term, ongoing financial ramifications for businesses beyond initial property damage or other tangible impacts. For example, if a fire damages your building, commercial property insurance might help pay for repairs, but business interruption insurance is needed to compensate for losses and expenses while your company recovers and waits to reopen.
How Does Coverage Work?
Business interruption insurance may issue financial aid in response to many common incidents, including fires, break-ins, burst pipes and vandalism. In response to a covered event, your coverage might help pay for the following:
- Lost revenue
- Employee payroll
- Rent
- Mortgage and loan payments
- Taxes
- Temporary relocation costs
Who Needs Business Income Insurance?
This type of coverage may be advisable for all commercial entities, but certain types of businesses may be particularly vulnerable to temporary shutdowns. If the following apply to your company, you may want to highly prioritize business interruption insurance:
- You’re highly dependent on physical locations, such as retail stores and restaurants
- Your workplace is dependent on specific equipment or devices, such as those used in manufacturing
- You operate a seasonal business that could be devastated by missing out on a busy time of year
- Your company depends on supply chains, such as if you operate as a wholesaler or distributor
How Are Rates Determined?
Business interruption insurance costs can vary significantly. Carriers may take a close look at your operations, including analysis of the following:
- Location
- Industry
- Revenue
- Workforce size
- Years in business
- Claims history
Learn More
Contact Primero Insurance today to discuss your coverage options and secure your company’s financial interests with the help of ideally formulated business interruption insurance.