The COVID-19 pandemic interrupted most businesses and in particular hit small businesses hard. Even if your company had business income loss insurance as part of your commercial policy, you may have not have had coverage throughout the pandemic. What was the problem with coverage and business income losses during the pandemic?
What Happened to Small Businesses?
Most businesses had to shut down during COVID-19. Some companies couldn’t begin to recover until almost a year later and many are still struggling to find their footing again. After such serious losses, how can you pay to start again? Business loss insurance generally has a virus exclusion. This means that you cannot claim losses due to bacteria or viruses.
How Are Insurers Helping Small Businesses?
There are endorsements available for business owners. The endorsements provide extra income to businesses that suffered losses from COVID-19. If your company was closed or if you were placed under quarantine during the pandemic, you could have limited business income coverage. Insurers are more aware of the needs of their business owners and the need for better coverage for income loss.
The COVID-19 took a lot of businesses by surprise. No one expected the losses that occurred throughout the course of the pandemic. It is critical to have the business insurance policies in place now to ensure that it never happens again to your small business.