Loss of regular income can quickly devastate a thriving marine business. Marine business owners insure buildings, docks, and vessels and protect ourselves from liability but easily overlook the impact of lost income. If your normal business activities are disrupted how long can your business comfortably pay rent and employee salaries?
Sustaining your business during a time of calamity and ensuring that you can continue to meet all your financial obligations and keep valuable employees can be challenging. Business Interruption coverage removes the financial risk of losing your ordinary income and allows you to cover ordinary operating expenses including payroll and loan payments.
Additionally, there is Extra Expense coverage (EE for short) to cushion the negative impact of an interruption to your marine business. This EE applies to the time it takes to restore your business operations back to normal. EE coverage might include new expenses, including temporarily renting or leasing space until your facility is rebuilt or expediting shipping for necessary replacement items.
How the BI or EE insurance elements are structured can vary greatly, depending on the unique needs of each marine business. An experienced marine business insurance professional will assess the risks your business might encounter during the business interruption. Among the various kinds of considerations are the loss of rental income, equipment failure (including electronic equipment like computers), food contamination, and food-borne illness.
Want to learn more about business interruption insurance? Contact the marine business insurance professionals at Global Marine Insurance to find out more.