How One Tiny Insurance Oversight Ruined a Business
Mike’s local bakery was in its 5th year. His dream, a cozy little shop with the sweet scent of cinnamon rolls wafting through the air, was booming and life felt perfect. Then, disaster struck. An employee forgot to turn off a piece of equipment and fire broke out, severely damaging the whole operation, and forcing him to shut down. Now Mike faced an uphill battle.
Confident his insurance would cover the damage, he filed a claim — his policy covered fire damage, but he was blindsided by a devastating truth, he had skipped business interruption coverage to save a few dollars. That meant no coverage for lost income during the shutdown. With expenses piling up and no revenue coming in, Mike was out of business in less than a year. The cost of his oversight? A million-dollar dream, turned to ash.
Many business owners make the same mistake, underestimating the need for interruption coverage. The cost of adding this coverage is minimal compared to the financial devastation of a prolonged closure. Ensuring your policy covers all potential risks is an essential part of safeguarding your livelihood.
Questions to ask your agent:
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Does my business insurance include interruption coverage?
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How long would my policy provide income replacement?
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What additional endorsements should I consider for my business?
Don’t end up like Mike. We have the coverage you need and helpful agents to walk you through every step of the process!