Following a covered disruption, this insurance can help businesses of all sizes stay afloat and recover quickly. This is because business interruption insurance can reimburse income organizations would have received had they been able to operate. This was particularly important for the bagel shop, as paying for costly repairs and not having a steady flow of income could have bankrupted the business. With the right policy, organizations can take the necessary steps to get back up and running, all without sacrificing day-to-day income.
The challenge: After a night of severe flooding, a number of area businesses experienced substantial water damage. Of these businesses, an auto dealership was hit the hardest, losing the majority of its inventory.
In addition, because of the flooded lot, the dealership had to move its operations to a new location. This, in turn, meant the dealership had to sign a new lease and cover steep moving expenses.
In the face of a disaster or other disruptions, organizations will voluntarily to move locations in order to remain open. Without the proper policy, organizations would have to pay for these costs out of pocket. Thankfully, insurance companies can reimburse organizations for all of the costs associated with a move.