Restaurants, hotels, laundromats, and other businesses across the nation depend on linen supply companies to keep them running properly. The amount of linen, in the form of sheets, towels, uniforms and other essential products in use on a daily basis is staggering. Now imagine if an electrical circuit goes out, or an expensive piece of machinery malfunctions, just how many businesses would be negatively affected? If even one linen company had to shut down for just a day the impact could be monumental.
As an owner, if your business suffered a work stoppage that resulted in a serious business interruption, without Linen Supply Companies insurance that directly addresses this issue your business would be at risk. The significance of the losses could be staggering, and your reputation would also be on the line. In this competitive and burgeoning industry, an event of this type could lead to ruin.
Business interruption insurance vital to success
As you already well know, insurance is a necessity and should never be overlooked. If your company is forced, for any number of reasons, to temporarily cease business operations you probably need business interruption insurance to address these concerns. The primary purpose of this policy is to ensure the business’s income continues to flow when a crisis arises and the business is unable to function for any given amount of time.
You can rest assured that any ongoing expenses will be covered when unable to perform your usual operations. It’s good to know that this policy can also be included in a business owner’s policy (BOP) as part of your Linen Supply Companies insurance coverage.
Business interruption coverage provides for lost revenues, including profits that one would’ve earned if the incident had not occurred in the first place. This often includes the day-to-day expenses, any normal operating costs, such as employees’ wages, and relocation expenses to move the business to a temporary location if required to do so, which may also include moving costs and/or the cost to rent.
You’ll be covered once it’s determined that the cause of the interruption was a covered loss. So, for example, if a fire were to destroy an office, then this type of an event would likely be covered. However, any damage resulting from a flood would only be covered by a flood insurance policy.