|
Premium Search
>
Business Insurance Information >
Business Interruption Insurance |
| |
Business Insurance
|
|
What is business interruption
insurance?
|
|
|
|
A business
interruption insurance policy
compensates a business for lost
income should the company be
unable to trade for a period of
time due to disaster-related
damages. It covers the profits
you would’ve earned based on
your financial history, as well
as operational expenses and
other pre-determined costs, even
though business operations may
have come to a temporary halt.
Business interruption
insurance
can be as critical to your
business’ survival as fire
insurance, for example. If your
business depends on constant
trading to generate revenue, no
trade means no income! It would
be foolish to start a business
without insurance against fire,
yet most people fail to consider
how they would continue doing
business if they were to lose
their business infrastructure!
Do your insurance homework
properly
Getting the nitty-gritty details
down pat is key to selecting the
right policy for home business
insurance or small business
insurance. Ensure that the
insurance policy’s business
cover is sufficient to cover
your small or home-based
business venture for more than
just a couple of days. After a
major catastrophe, it always
takes more time to get back on
track than one would anticipate
– make provisions for this!
Horses for courses
A small business insurance
policy’s price is related to the
relative risk of a certain type
of disaster affecting your
business. For example: a
restaurant’s business insurance
premium against fire would be
higher than a events organising
company, as the risk of fire
would be greater in a
restaurant. Also, an events
company could operate far more
easily at a different venue,
whereas a restaurant could not.
As such, it is ultimately up to
you to select the correct small
business insurance policy with
the right levels of business
insurance cover. Be sure to
contact a few South African
insurance companies like
First
for Women,
Auto and General,
Budget Insurance Brokers and
Dial Direct Insurance for advice
and free small business
insurance quotes.
|
|
|
