Every business comes with a certain amount of risk. Although difficulties and challenges can’t be avoided, they can be mitigated with the proper precautions, planning and insurance coverage.
In support of National Small Business Week (May 1-7) and to help business owners understand insurance, the Insurance Information Institute (I.I.I.) developed this infographic that focuses on business interruption insurance which is also posted on the I.I.I’s Business Pinterest Board.
Did you know that after a catastrophe or other disaster 40 percent of businesses do not reopen and another 25 percent fail within a year?
When a business is shut down due to a damaging event it loses revenue. Meanwhile, the business still has to pay its bills and may incur additional expenses as a result of the disruption.
Fortunately, with business interruption coverage, many of these costs and losses can be reimbursed.
A recent report from Allianz Global Corporate & Specialty (AGCS) found that the economic impact from business interruption is often much higher than the cost of physical damage in a disaster and is a growing risk to companies worldwide.
In that report AGCS also noted that the vast majority of BI losses are not caused by natural catastrophes, but rather non-natural hazard events like human error or technical failure.
Cyber business interruption risk is often underestimated, another report found.
More information on covering losses with business interruption insurance is available at the I.I.I. website.