Minimize Losses From Business Interruption

1/17/2023 (Permalink)

How would your business be affected if your building was temporarily unusable due to flooding? Business interruption insurance can help offset some of the financial impacts, but a quick cleanup and restoration are the key to minimizing losses.

Business Interruptions

Business interruption insurance usually covers things like lost income during a temporary relocation, compensating you for revenue you would have made during that time period. This is great, but there are often limitations, including a waiting period and maximums. When you experience large water damage, you may have downtime due to things like:

• Damages to equipment
• Damages to office or warehouse space
• Inventory loss
• Temporary move-out for remediation and repairs
  
  

One of the most difficult financial hardships from a business interruption comes from the loss of long-term customer relationships when customers go elsewhere to fill their needs. Recovery from flooding can have a lasting impact in this way. The best solution to reduce these losses is to minimize the recovery time.

Minimize Recovery Time

A quick recovery is best to reduce losses from direct damages and from lost revenues, as well as those more harmful long-term customer losses. How can you minimize downtime after flooding? Work with a commercial water mitigation specialist. By doing this, you better your chance of a quick and effective recovery by relying on expertise and knowledge that is relevant to your exact needs. You will also benefit from the use of specialized equipment that removes water and dries materials effectively. In contrast, individual contractors are a larger gamble as they may or may not have flood experience, and you may have to work with multiple contractors to meet your needs.

Even though you have business interruption insurance, you can help minimize your losses from a broken pipe or other flood cause by calling a mitigation specialist right away. Working with a specialist is a great way to get back to business quickly so you can continue maintaining existing relationships with customers.