The Traverse City, MI business owners will require business insurance depending on the nature of the business. If you run an eCommerce business the slightest interruption can lead to thousands of dollars in lost revenue. Looking for business interruption insurance can help should a major interruption occur.
What is Business Interruption Insurance?
Business interruption insurance covers lost property and profits. Your profits would be based on your average profits at the time the interruption occurs. There are a number of factors such as your deductible as well as the size and profitability of your business.
Finding Business Insurance
Not all businesses can apply for business interruption insurance. In order to qualify you have to document your net income and any issues such as accidents you might have had usually in the past five years. This will affect how much an insurer will be willing to insure your company. You will have to therefore be in business for at least five years in order to purchase this type of business insurance coverage. You want to discuss your options with your insurance company to come up with the type of coverage that will be of the most benefit for your company.
The Importance of Documentation
Many businesses do not want to consider business interruption insurance as it actually takes quite a bit of work. You are responsible for supplying all of the information in order to qualify for worthwhile coverage. You have to look at year over year performance in order to have proof of how you performed at each period of each year in order to show that you are eligible for the amount of revenue you feel you are entitled. Documentation must be clear and the insurance company will be doing their own investigation to determine what they deem to be the true average. You do have a few weeks to submit your estimates but it can prove to be a lot of work.
Keep Records Safe
Many eCommerce businesses find that the safest way to keep documentation is to store it on the cloud. However there are many services that will keep all of your information backed up so that you have access to it when you need it. You need the information to be stored safely not only for insurance purposes but businesses purposes as well. The cloud allows you to access your information whenever you need it as long as you have an Internet connection.
JAI Insurance can provide you with the best business insurance in Traverse City, MI business owners require.
