As wildfires have raged in areas across the country like California and the Smoky Mountains of Tennessee, it poses questions for the businesses that must close their doors and evacuate: If they’re not operating, how will they cover fixed expenses like rent or utilities? And what about payroll and surviving the revenue loss?
Many businesses have business interruption insurance that is meant to serve as a safety net when disaster strikes that covers a loss of income and fixed expenses. In fact, the NAIC Center for Insurance Policy and Research estimates that 30% to 40% of small businesses have this type of insurance. So, when a loss happens and you have business interruption insurance, you’re covered … or are you? In this day and age in 2022, the answer is more complex than it was a decade ago.