From riots and civil unrest to natural catastrophes, San Francisco Bay area business owners face countless exposures to losses both during and after disasters. As devastating as the initial impacts of a disaster can be, SF businesses quite often face an uphill battle during the aftermath. In fact, up to 60 percent of businesses never reopen their doors in the wake of a disaster according to the U.S. Small Business Administration. The unfortunate truth is that most businesses are improperly prepared for disasters, and are frequently under insured. When devastation strikes many operations are cut off from the vital resources needed to recover operations including finances.
Basic San Francisco business insurance policies are not designed to help business owners shoulder the full burdens of a disaster event, but there are other policies which are. SF business interruption insurance, for example is a risk transfer strategy which can help keep an operation afloat while recovering from a catastrophe. Originally established for the manufacturing industry, business interruption coverage provides resources that support actual recovery and are not provided through other types of coverage. While your business property insurance is helping your physical structure, business interruption coverage can help recover lost business income and other expenses.
Business interruption insurance covers operating expenses that continue even after a loss, such as payroll, temporary relocation and equipment coverage. Furthermore, these policies also offer income coverage which is designed such that the insurer provides the net income a business would have earned had they been in fully operational capacity. Unlike a physical damage loss, business income is based on assumptions of what would have happened if there had not been a catastrophe or other operational interference.
At Cal-Nevada Insurance Agency, we take the guesswork out of preparing for disasters like a business shutdown. Our SF business interruption insurance specialists work with clients throughout San Francisco and the northern California helping to better prepare businesses for disaster. We offer a host of risk management services along with our comprehensive portfolio of business insurance solutions. To learn more about our operation and all of your offerings, give us a call today at (866) 670-5948.