Business Survival After a Fire

10/6/2023 (Permalink)

Commercial fire and water damage in Andice, TX.

Business Survival Following a Fire

The fire department has left. The fire is out, but fire, water and smoke damage remain. Now it is time to resurrect the business from the ashes. This is where traditional fire insurance comes into play. It will help with the cost of fire restoration and, in time, the company can resume normal operations. Until then, however, there are still bills to pay. This is where interruption insurance enters the picture.

Financial Impact: Direct

A business that is partially shut down has less revenue. A business completely shut down has none. A shutdown impacts customers and stockholders, but at least they won’t be looking for payments from the business. For the landlord, utility companies and government, it’s a different story. Regardless of the situation, business owners still have to pay the following:

• Rent
• Utilities
• Taxes

In addition, other vendors may also come to collect. An interruption insurance policy can help the business deal with these problems and minimize the financial impact of the fire.

Financial Impact: Indirect

A business interruption can result in several other one-time expenses that don't directly impact revenue but affect profitability. Insurance can help with this as well. For example, if the operation can be temporarily moved to another location, the cost of relocating both ways could be covered. If employees need to be retrained to use new equipment, that could be covered. Even lost profits or some portion of lost revenue could be covered. A good interruption insurance policy can be the difference between a successful recovery and a dismal failure.

The Real Job

With the insurer handling the financial aspects of the fire, the business can focus on fire restoration. It is in everyone’s best interest that this gets done as quickly and efficiently as possible. Therefore, the business needs a qualified and capable restoration expert from Andice, TX, on the job. Soon, the business will be up and running again, better than ever.