What About Lost Revenue to Your Business After a Fire?
While a structural fire in Englewood, CO, is always a disaster, it often isn’t the fire damage itself that does a business in – it’s the lost revenue afterward that’s really the proximate cause. Interruption insurance in many cases is the difference between bankruptcy and resiliency.
But Fire Insurance Has You Covered, Right?
If your business has fire insurance, you should be covered in virtually all cases of serious fire damage. This includes damage such as
- Heat damage
- Smoke damage
- Water damage from firefighting efforts
- Structural damage
- Items essential to your business
What Isn’t Covered?
If the fire was set by you or someone under your direction, it won’t be covered. Fires arising from war, earthquakes, and floods are also often not covered. And without a rider, business interruption isn’t covered, either.
Personal property often isn’t covered, but it depends on your policy. If a customer’s personal property is damaged, that might be covered.
How Can You Beat the Odds?
You need to get your business up and operating immediately to offer the greatest resiliency. This means calling in the best local fire restoration experts you can get. They can tarp and board exposed areas and perhaps offer limited operations while the repairs are underway. You should also get business interruption coverage.
What Is Interruption Insurance?
Statistics from FEMA indicate that 40% of small businesses will never reopen after a disaster. Further, another 25% fail within a year. This means that, without the right coverage, a small business has a 2/3rds chance of failure.
Interruption coverage provides some or all of your lost revenue while you’re waiting for the rebuilding. In most cases, this eliminates the risk of your business failing from the disaster.
The time immediately after a fire is critical to your sustainability. Instead of worrying about lost revenue, interruption coverage can help you concentrate on connecting with your best customers and incrementally getting operations back on track.
Interruption insurance is a proven way to avoid insolvency. It usually isn’t covered in your standard policy, so ask your agent about it today. The peace of mind alone is usually worth the price.