Natural disasters can be devastating for any and all businesses, no matter their size, but how can small businesses prepare for such a calamity without experiencing business interruption?
Natural disasters can take many forms, but almost all of them can devastate your business, which leads to business interruption. Business interruption is when an event occurs that decreases the average earnings of a business for a prolonged period of time. Along with small business insurance in Bedford, MA, here are a few ways that a business can continue to succeed and sell, not succumbing to business interruption, despite a natural disaster.
- Don’t underestimate the business interruption length. When looking over business interruption coverage, it can be tempting to assume that a business will only be out for a couple of days and save some money–especially if the building has never faced such a disaster. Every business owner needs to be sure that business interruption coverage insures their needs.
- Suppliers must be covered at all times. A business might not be directly affected by the natural disaster, but it indirectly could be. If the supplier is affected by an earthquake or hurricane, a business may not be able to receive its raw materials for its product or service. Contingent business interruption can reimburse companies if the supply chain is broken.
- Look over the payroll coverage. If a business employs specialized employees, business owners need to ensure that they keep working while the business recovers. Working from home or some secondary location is a good way to keep employees working. Every business requires different things for its employees. Make sure that your business has the coverage necessary for its needs.
- Create a disaster recovery plan. How will a business recover after a natural disaster? This is a question that every business owner should know how to answer. A disaster recovery plan covers the technical aspects of what a business owner requires in order to revive their business. Within this plan must lie a communication plan that alerts employees how to proceed and communicate with work.
We at PMC Insurance Group can supply the perfect small business insurance and can assist in putting the proper policies in place to protect any business from the dangers of natural disasters and business interruption. To learn more about getting competitive coverage for your small business clients, contact us today.
