Business owners need to continuously meet their financial obligations to remain financially viable. One of the key relationships many companies must maintain is their vendor relationships. Business insurance can help you to maintain that relationship even when outside events impact your company. If your policy includes business interruption coverage, it could help pay your vendors when a covered incident occurs. How can this help you?

Let’s say a fire ravages your business and it will take some time to complete repairs. During this downtime, your business is unable to generate a profit. You can’t operate. If you know the business closure is going to last for an extended period of time, you may want to turn to your business insurance provider for help. Generally, the fire or other event is covered under your policy, as are the cleanup and repairs. Your policy may also provide business interruption insurance. This coverage can help you keep up your payments for expenses by providing you with your would-have-been revenue during the downtime.

As you can see, business interruption insurance can help you continually meet your financial obligations, even if a covered event prevents you from taking in revenue for a certain period of time. This coverage can also help you make vendor payments in these situations, which is important since vendors generally only work with small businesses as long as those businesses continue to make their financial obligations.

A devastating fire, like the one mentioned above, would normally damage vendor relations — as your cash flow would be cut off. But with business interruption coverage, you’ll maintain your revenue stream even as your business is in the midst of recovery; this will ensure that your vendors continue to be paid on time.

Fires and other events can hurt businesses in many ways, but with business interruption insurance, those risks are minimized. Better yet, this coverage will allow you to maintain your business relationships even if your doors are closed — reducing the risk that you’ll lose the trust of vendors once you re-open.

Get the right coverage for your needs. Call Nobles Insurance Agency at (919) 833-3803 for more information on North Carolina business insurance.