Let’s say a fire damages your restaurant. Or a major weather event causes the roof to collapse on your office building. Often, the business will have to shut down while making repairs. This is often an inconvenience to both the owner and employees if they cannot work. This could mean a loss of income for the business and its workers.
Most businesses turn to their commercial insurance following instances like these. Many business insurance policies can assist operations that have to stop temporarily. A core component of many policies is business interruption coverage. It can protect not just the business owner, but also employees.
How Business Interruption Coverage Works
Business interruption coverage follows a general idea. If you cannot operate your business, you cannot make money. Still, your financial obligations to others continue to weigh on the business. You might have bills to pay, after all. You can’t ignore these costs, after all. That’s where business interruption coverage can come in. It might help businesses cover residual costs until they can reopen.
The Benefit of this Coverage for Employees
Often, coverage will provide funds to help pay employee wages during the closure. This can benefit employees in several key ways.
- An employer can continue to provide employees with a paycheck during the closure. This can ensure the workforce can support themselves even while they cannot work.
- Business interruption coverage can also help ensure employee loyalty. If businesses can provide their paychecks, workers likely won’t have to get new jobs during the closure. This means they can return to work for you when you reopen. In many ways, providing wages during your closure can help improve turnover rates.
- Business interruption coverage might help the business not have to shut down at all during repairs. It can often cover temporary relocation costs, so the business can continue to operate in another location. This might prove a benefit, because it means employees can continue to work without the extended inaction of waiting for reopening.
The smart business owner should consider business interruption coverage a vital part of their employee benefits. However, keep in mind that business interruption coverage is not the only benefit your employees will need. Workers’ compensation, health insurance and other protective benefits can often help employees both before and after temporary closures. If you need more information on your San Francisco employee benefits, call our agency at (415) 512-2100