Have you ever stopped for a moment to consider the number of things that could bring your business to a shuddering halt?
It could be anything – from a fire on your premises to a flood. It might even be something that actually happens to someone else but still affects your business.
Without going into a long list of possible factors, the point is there is no end to the number of uncontrollable factors that could force your business to suspend trading indefinitely.
This is where business interruption insurance comes in.
Far too many SME business owners are running their operations without any form of business interruption cover, exposing their companies to a potential financial disaster that could easily have been averted – if they’d been insured.
A recent QBE business risk report estimates that just 17% of small businesses have policies in place for unexpected disruptions to their operations. The report puts the low take-up rate down to a lack of knowledge and understanding of business interruption cover.
More than 40% of the 501 businesses surveyed by QBE have never heard of the product, 11% are aware it exists but know nothing beyond that, and 23% have a vague idea of how the cover works.
It is evident that not enough business owners are taking that moment to consider how they’d cope with an unexpected event that completely sidelines their business.
Business interruption cover helps to protect against loss of future earnings and ensures the continuity of income after an insured entity is forced to stop operations because of an unexpected event.
The cover pays for fixed costs such as rent, utilities and loan repayments when the business is suspended indefinitely.
A business interruption cover may just be the life-saver your business needs when disaster strikes.