Why is Winter Business Interruption Insurance Important?

Although inclement winter weather conditions may not be the first thing Texas businesses think of when composing risk management plans, even isolated incidents require appropriate preparations. While somewhat rare, freezing rain, ice, snow and strong winds can all still occur, potentially coupling with relatively cold weather to wreak havoc on your business. Amid these situations, having appropriate insurance, including business interruption coverage, may make all the difference.

What Is Business Interruption Insurance?

These policies, also known as business income insurance, are among the most common pillars of a company’s coverage portfolio. This type of coverage is often obtained as an endorsement added to your commercial property insurance policy, but standalone insurance may also be available.

Regardless of how you get your coverage, business interruption insurance can help pay for losses and expenses arising from unforeseen disruptions in your company’s usual operations. While exact capabilities and limitations may vary, payouts can typically render aid for the following:

• Rent

• Reduced revenue

• Employee payroll

• Loan payments

• Utility bills

• Taxes

• Temporary relocation costs

How Does Winter Affect Coverage Needs?

While business interruption insurance may be a necessary loss control measure throughout the year, its importance can be particularly relevant during winter months. That’s because many weather-related perils, such as hail and windstorms, are typically covered incidents.

This means that if such incidents temporarily force your business to close or otherwise disrupt normal operations, your business interruption coverage could help limit out-of-pocket losses.

Additionally, winter may exacerbate the risk of accidents, errors and other workplace mishaps. Slippery surfaces and reduced daylight could create hazardous working conditions, resulting in employee injuries or property damage that could quickly derail normal operations.

In such situations, business interruption coverage can help your company endure fiscal repercussions and get back on its feet as soon as possible.

We’re Here to Help

Contact Xpress Insurance in San Antonio, Texas, today to learn more about business interruption coverage or to get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.