It’s not a secret that the global pandemic that started around two years ago still continues to affect economic activity. Public health is of the utmost importance, and people are experiencing sudden shifts in work routines and everyday life. As more people do their best to avoid the effects of the virus, finances are on the brutal end of this “new normal.”
Insurance policies have become one of the products available for various reasons. However, do you know that insurance policies are not just for individuals? Businesses, companies, and industries sign up for insurance policies for entire organizations in unfortunate situations.
Businesses in Santa Clarita Valley optimize insurance policies to shift business activities during these challenging times. The question is, how do these enterprises use insurance?
Business interruption insurance
The first way a business can leverage insurance is through business interruptions. There are various kinds of insurance policies and benefits even for businesses and companies. With the onslaught of the pandemic, especially at the initial stages of the Coronavirus pandemic, cities and countries are placed on strict lockdown. Containment is key in keeping dangerous effects away as much as possible.
Unfortunately, the lockdowns and quarantines become the thing that suspends and blocks business activities. Remember, not all business activities in Santa Clarita Valley operate online. Physical stores and rented spaces become the workplace of thousands of employees and owners.
Business interruption insurance policies cover for the “what could have been” income from business activities. Insurance policies for business interruptions cover fixed expenses like employee wages and rent.
For tractor enterprises in Santa Clarita Valley that needed to halt business operations, insurance helps offset some expenses from the lack of business activity.
Read more: Tractor insurance
Insurance policies for third party extensions
Business interruption insurance policies may all come in different cost ranges; however, not all insurance policies have comprehensive coverage for the business chain. A business comes in a long series of activities such as suppliers, manufacturers up to logistics, until the final consumer. When one part of the chain is affected by the virus, the other parts suffer as well.
Unfortunately, the case applies, for example, in supplier interruptions. If business suppliers are forced to lockdown and unable to produce necessary products or services to sell, then the business has nothing. As such, third party extensions are part of essential insurance coverage.
One typical scenario is the cessation of supply activities from a business activity due to quarantine lockdown of an entire factory. The supplier may be a different business from your primary business, but having no proper supplier can force you not to sell as well. As such, there are insurance policies that cover suppliers up to potential customer claims.
Workers need insurance policies as well. The business employees are the bloodline of the business, and when someone from your team gets sick, that person can also infect others. As such, there are insurance policies that cover occupational risks.
Imagine you’re a business owner. If there are no strict methods to disinfect and make surfaces more sanitized in your business location, your team can get sick. People are equally prone to the virus with an asymptomatic workmate around.
Workers’ compensation covers scenarios such as occupational hazards like a frontline worker who works in the hospital ward for COVID infected patients. The worker compensation covers the health-related costs of potential viral infections from the workplace.
For agricultural supplier businesses, it’s best to protect your people to ensure that the farm produce is high quality and safe. Workers compensation not only protects workers, but also business owners from liabilities and potential claims. This form of insurance is a small benefit that provides wide protection coverage.
Read more: Farmers Market Insurance