by Matt Alderton | June 19, 2019
When they think of summer, most people think of sunshine and swimming pools. But summer has a different, sinister side, too. Summer, for instance, is when tornadoes are most common in the Midwest, when wild fires are most likely in the West, and when hurricanes are the biggest threat in the South and East.

If you're a small business owner, these and other disasters like them could easily wipe out your operation. That is, unless you have the right insurance policies in place.

Along with property and casualty insurance, it's a good idea to consider business interruption insurance.

"Fires, floods, building collapse, theft -- any of these situations could make you have to temporarily shut down your business and consequently lose income," author Kiely Kuligowski writes in a recent article for Business News Daily. "Business interruption insurance will compensate you for some or all of the money you lose from not being fully operational."

According to the Insurance Information Institute, business interruption insurance covers "the revenue you would have earned, based on your financial records, had the disaster not occurred," as well as "operating expenses, like electricity, that continue even though business activities have come to a temporary halt."

Like all insurance policies, it's important to pay attention to the fine print, including what is and isn't covered, what documentation is required with claims, what waiting periods apply and how long coverage lasts.

Regarding the latter, the Institute advises, "Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track."

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