Coverage Protects Business When Incident Forces Closure

Recently a terrifying robbery had a local mall on lockdown and everyone (business owners in particular) watching and wondering what they would do in the situation: At a high-end department store that anchored the mall, three gunmen entered just before closing. Sales staff and customers were taken hostage; the gunmen ransacked the store, raided cash registers, sprayed bullets all over the store and wreaked other damage, and to make matters worse, physically assaulted one of the female sales staff and shot another one in the leg.

The gunmen initially escaped, yet the store was shut down while police investigated the crime scene. Even after the investigators cleared out, the store was shuttered while management arranged for care for the injured staff members, handled cleanup and repairs, and addressed the delicate task of reassuring employees and the public that it was safe to return to the store. Even so, it was weeks before normal traffic levels resumed at the location. Those weeks of downtime and the slow return to normalcy could have caused a financial disaster for the store, but fortunately the “gross profits” coverage in the store’s business interruption insurance policy started from the day the claim began (the robbery), until the store’s profitability returned to the level it was at just prior to the claim, while the “gross earnings” portion of the policy covered ordinary payroll for employees during the claim period.

Of course, physical safety is of paramount importance for everyone—but secondarily, you’ll want to ensure your company can survive an incident like this as well. Talk to a professional insurance agent about business interruption insurance for your operation. Whether the closure results from a robbery, a fire, or other major incident, having the right protection in place before the claim occurs could save you in the event your sales are stalled for any length of time.

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