The coronavirus pandemic has changed our lives in many ways, one of the most important issues that business owners are faced with being how to protect their employees and their businesses. Each business chooses a different path and resorts to different measures, one of the ways to cope with the difficult situation being to turn to the business interruption insurance. This special policy helps both parties, the business as well as its employees – here is how:
- Coverage for profits that have been lost – According to APCO Insurance professionals, a business interruption policy covers for profits that would have been earned by the business, thus helping the business maintain the financial position it would have occupied if the situation that caused the disruption had not occurred;
- Usage for employee wages and other expenses – the policy might be used for covering the company’s expenses, including employee wages, loans and rental fees, therefore it might be of great help for any business that wants to keep its employees.
Business owners must be aware that not all business interruption policies can be used for claims related to COVID. It all depends on how the policy is worded and on the endorsements and exclusions in the policy, so the first task for any business owner is to read the policy document very carefully.