Business owners can easily be confused by business interruption insurance policy coverage, especially if they've just gone through a disheartening disaster that may have affected their venture. They are not in any condition to agree to any terms, and may have little to no knowledge of what they are about to sign up for.
Indeed, there is never a good time to discuss business insurance coverage, but the truth remains that nothing will be solved if they will keep on avoiding the topic; that is why it may be easier to talk about business interruption coverage to the best of their abilities, to avoid making mistakes along the way.
One of the things that business owners must note of is the different myths or misconceptions that may further complicate things by feeding them the wrong information. Below are just a few examples.
1. It's All about the Insurer and not the Business Owner
One of the biggest myths surrounding business interruption insurance coverage is that it's all about the insurer and not the business owner. If they're not careful, they may wind up signing a contract that makes the insurer their top priority and not the business.
That's why it is always their top priority to make sure that the business owner's interests are always taken into consideration at all times, and not just the insurer's. Disasters are very stressful, so the best thing that the business owner can do for themselves is to make sure that their best interests are always protected.
2. It Doesn't Cover Losing Profit
The truth about business interruption insurance is that it does cover losses in profits. Of course, the coverage will be based on the business owner's losses, but every business owner's losses are different for several reasons.
The good thing about business interruption insurance is that it can go a long way in helping the business owner in recovering lost profit. The coverage can help the business owner rebuild the entire structure of the business to ensure that the company will have a better chance of surviving what happened.
3. It's Just a Form of Insurance
Another common myth is that business interruption insurance is just another form of insurance; nothing more, nothing less. In reality, it is actually a type of contract between the business owner and the insurer.
Since the business interruption insurance policy is a contract, it is essential that the business owner carefully review it to ensure that it is complete and accurate. They have to be sure that the contract they will be signing will cover their assets and gains and not the other way around.
4. Business Interruption vs. Other Types of Insurance
Business interruption insurance does provide the business owner with a certain amount of protection that they may need after going through a disaster, as it is an extension of the business owner's property insurance. However, what most business owners don't know is that business interruption insurance can also be an extension of life insurance and casualty insurance coverage.
In fact, for the business owner to have a better chance of getting a good business interruption insurance policy, it may be important to purchase other types of insurance.
These are just some of the most common myths regarding business interruption coverages. In order to get a grasp of its main rules and regulations, owners must first learn how to separate fact from fiction; otherwise, they may end up making mistakes that are 100% avoidable.
If you happen to be in the same situation as they are, be sure to do all the necessary research and take note of our tips above for your future reference.
If you are looking for a reliable provider of insurance for business interruption, look no further than what we have to offer here at New Wave Insurance. We are here to help you find the right insurance for your assets, business, and vehicles! Contact us today and let us discuss all your available options.