Is your store properly covered for the unexpected? Before you answer, imagine this: A delivery truck crashes into a utility pole during a winter storm, taking down power lines and causing an outage at your store. During the outage, the absence of heat coupled with extremely low temperatures causes a pipe in your store to freeze and crack overnight, resulting in water damage to inventory, walls, and floors. And even though the power is restored 31 hours later, your store remains closed for an additional two weeks to conduct the necessary repair and restoration, resulting in a loss that exceeds $200,000, including payroll expenses and lost sales.
Are you covered? You could be if you have the right coverage.
What is Business Interruption Insurance?
In a nutshell, business interruption insurance is a coverage that can help you recover lost income and cover expenses incurred during a temporary disruption of business. If you experience an unexpected event that forces you to temporarily pause business operations, you may still be required to cover your regular business expenses, like rent, taxes, or payroll.
In addition, you may also incur extra expenses to clean up and restore your building, not to mention the costs necessary to replace any damaged inventory you’d be unable to sell. Covering your regular and unexpected expenses could be difficult—or impossible—especially if you’re unable to generate income.
Is Business Interruption Insurance really worth considering?
The short answer is yes. Not only can business interruption insurance be affordable—with average premiums as low as $30 per month—it can also provide the peace of mind that comes with knowing it’s possible to recover from an unexpected event in a timely manner.
If you were to experience an incident like the one described above, your recovery could be less complicated with business interruption insurance, especially if you maintain excellent financial and inventory records.
Prepare for the Unexpected
As cliché as it may sound, the phrase “expect the unexpected” is good advice, especially for small business owners. When it comes to protecting your business, if you frequently think, “What if this happens,” but you hesitate to act, consider the following:
- Unexpected Events Happen—In 2021, the “Texas Big Freeze” caused huge disruptions to the state’s infrastructure, resulting in widespread power outages, multiple forced shutdowns, and extensive property damage that cost an estimated $150B.* An investment of about $30 per month for business interruption insurance could be the difference between recovery and bankruptcy.
- Be Prepared—Maintaining good financial records helps ensure you are as prepared as possible to seamlessly recover from an unexpected event. For example, a well-maintained Profit & Loss statement, an accurate inventory count, and up-to-date payroll records will help you confidently estimate and report a loss to your insurance company.
- Don’t Wait—If you don’t currently have business interruption insurance, there’s no better time than now to act. Protect your franchise today, so you can feel reassured you’re ready for tomorrow.
The future may be uncertain, but National Captive Insurance Solutions, Inc. (NCIS) and Marsh are ready to help you prepare for it. As the exclusive administrator of the 7-Eleven Franchisee Insurance Program, Marsh truly understands your business needs. Schedule a consultation with an insurance specialist dedicated to assisting 7-Eleven franchisees, we’ll explain business interruption insurance in plain language, review your options, and help you get coverage.
Marsh is the exclusive administrator of the 7-Eleven® Franchisee Insurance Program. We can help you protect your franchise with comprehensive business insurance and quality customer service.
Not a current member of National Captive Insurance Solutions, Inc.? Let’s talk. Give us a call at +1 (855) 546-5361 to speak with one of our dedicate account managers. We’ll review your policy and explain the available coverage options.