Owning and operating a business is an endeavor that requires both patience and a high level of resilience, both of which are compromised and tested when an unexpected situation, event, or disaster strikes. The unexpected and/or unforeseen may be so immense that you may have to shut down your business, temporarily.

A severe weather event could interrupt power to your business. Vandals could engage in criminal mischief on your property that results in your business being inoperable. An electrical fire could spark and severely damage your property and business supplies.

These are just a few of the many complications that could detrimentally impact your ability to operate. To avoid suffering from immense financial losses, it is critical that you obtain business loss insurance immediately.

What is Business Loss Insurance?

Business loss insurance is a special type of insurance that aids in paying for the loss of the income from your business if you experience one of the losses that are outlined within the policy. Unexpected and/or unforeseen events may occur that require you to shut down your business in order to repair and/or recover from the issue.

As a result, your finances will be detrimentally impacted. This type of insurance helps to recoup a portion of the losses. According to statistics, approximately 40% of all businesses that shut down due to the unexpected never fully recover and are unable to reopen. This insurance will help prevent you from becoming the next statistic of failed businesses.

Is Business Loss Insurance Necessary?

While business loss insurance is not required, it is advisable. Unexpected events and situations have the potential to strike at any time, which could result in an immense drain on your money, your business, and your mental well-being. If your property becomes damaged or is completely destroyed, you will need time to engage in the act of repairing and/or replacing that which was lost. During the time when you are recovering from the losses, you will still have financial obligations. Examples of necessities during this time include utility payments, rent or mortgage payments, and money owed to your employees. If your business is not generating an income, this will be next to impossible. By getting business loss insurance now, you can be prepared if the unexpected hits.

What Does Business Loss Insurance Cover?

There are several different ways that business loss insurance can assist in protecting your business. In most instances, it covers the verifiable net income of your business that is lost as a result of the unexpected or unforeseen event.

The purpose and intent is to cover the ongoing expenses that your business incurs. It could help cover utility bills, such as water and electricity. It may help in covering the payroll that is owed to your employees. It may aid in covering your rent or your mortgage – whichever applies.

Additionally, it may help in paying property taxes, your security monitoring, and similar expenses. If you are in need of business loss insurance in New York, contact us immediately at: 718-855-1836