Benefits of California Business Interruption Insurance
Continuity is critical in business, and there are a few things more important than continuous revenue and cash flow, particularly for small to medium-sized organizations. In fact, just one brief business interruption can be incredibly costly for an organization, often leading to serious reputational damages or long-term closures. That’s where business interruption insurance can help. Contact GDI Insurance Agency, Inc. today at 209-634-2929 to get your quote!
Business Interruption Insurance is a coverage that provides protection against a variety of common interruptions, including natural disasters, equipment damage and vandalism.
Would Your Business Survive A Disaster?
Business Interruption Insurance doesn’t just assist small businesses in meeting payroll and bills during a crisis; according to data from the Institute for Business Home and Safety, 25 percent of businesses never reopen following a disaster or interruption.
For larger businesses, Business Interruption Insurance can provide employees and shareholders peace of mind. Shareholders especially like to know a business’ profits are protected in case of fire or other disasters.
The following are some other major benefits of business interruption insurance:
- Revenue – In the event of a disruption, business interruption insurance provides coverage for income your business would have earned during a closure period if it had been operating normally.
- Rent or lease payments – Even if your premises are unusable following a disaster or the event, many leases still require that you make payments. Business interruption insurance allows you to continue making rent or lease payments, even while your business is not operating.
- Relocation – In the event that your primary location is unusable following a disaster or other event, you will likely have to relocate in order to remain open and continue generating revenue. Business interruption insurance can cover the expenses of moving your business to a temporary location and may include both moving and rent costs.
- Employee wages – If you are unable to operate, it is likely you will not be able to continue paying employees. Business interruption insurance can help you avoid losing staff while you’re closed by ensuring that you make payroll. This is especially important, as finding new employees is often more expensive than keeping them.
- Loan payments – If you have an outstanding load, you will need to continue to make payments even if your business isn’t fully operational. Business interruption insurance will ensure you never miss a payment until you are fully operational again.
The Importance of a Business Continuity Plan
GDI Insurance Broker is here to help. As you see just buying insurance is never the answer. It is just part of the solution, but interestingly insurance is not the most important part of the plan!
Business continuity planning is the process of creating a plan now, so that you will be able to recover the most vulnerable parts of your company after a business interruption occurs. Your company’s business continuity plan, in conjunction with business interruption insurance, form your business continuity management (BCM) program. Businesses with strong BCM programs are more resilient in the face of emergencies and disasters.
We’ve Got A Free Toolkit!
GDI Insurance Agency, Inc. makes it easy to protect your business. Download our “Business Continuity Plan Toolkit” to take the first steps in preparing for the unexpected. Then call GDI Insurance Agency, Inc. at 209-634-2929 for your comprehensive business insurance quote.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
With locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive business continuity insurance quote!