All businesses must account for various risks and perils, and those that rely heavily on specific timeframes for financial stability may be particularly at risk. After all, even the most experienced, diligent and vigilant commercial enterprises cannot avoid all accidents, errors and unforeseen circumstances, and an ill-timed incident could destabilize your entire organization and jeopardize its future. With this in mind, ample loss control measures, such as seasonal business interruption insurance, must be prioritized.
What Is Seasonal Business Interruption Insurance?
As its name suggests, seasonal business interruption insurance is among various specialized types of business insurance that may be available to commercial enterprises. Also known as business income insurance, this type of coverage typically provides financial protection for policyholders should their normal operations be delayed, interrupted, or forced to shut down temporarily.
How Does Seasonal Business Interruption Insurance Work? 
Business interruption insurance often functions similarly to other types of coverage; in the case of seasonal enterprises, this coverage can be tailored to peak operational periods. This insurance helps you have protection when you need it, and not pay for it when you don’t.
Your company can further customize its policy and will then be responsible for keeping up with premiums to maintain its validity. While your coverage is active, you can file a claim against your policy in response to covered incidents, which often include fires, damaged equipment, criminal activity and some weather-related perils. If your claim is approved, your organization can receive a payout that may help pay for ongoing expenses and losses, such as rent, loan payments, payroll and lost revenue.
Who Needs Seasonal Business Interruption Insurance?
An unexpected hurdle at a critical juncture may have particularly consequential effects for businesses that rely on specific times of the year to operate. With this in mind, any organization with significant ebbs and flows in its revenue throughout the year, such as ski resorts, agricultural enterprises and event venues, should strongly consider seasonal business interruption insurance tailored for their peak periods.
Conversely, failing to acquire and maintain adequate business interruption coverage could have catastrophic consequences for your organization’s financial stability and future growth. Many events out of your control could destabilize your annual plans, inflicting irreparable fiscal harm.
How Much Does Seasonal Business Interruption Insurance Cost?
Like many types of insurance, the bill for an organization’s seasonal business interruption coverage can vary significantly. When analyzing your company’s circumstances, identifying its risks, exposures and needs, and quoting rates for appropriate policies, carriers may consider the following criteria:
- Location
- Industry
- Estimated annual revenue
- Length of seasonal coverage
- Policy limits
- Prior claims history
When investing in business interruption insurance for your seasonal business, your organization should also be aware that repeatedly starting and stopping coverage may incur higher rates over time. As such, maintaining year-round business interruption coverage may sometimes be a worthwhile investment. Speak with your insurance agent about your circumstances and to discuss which options make sense for your enterprise.
Get the Right Coverage
With a history of serving businesses and addressing their coverage needs dating back to 1987, the dedicated staff at Insurance Professionals Inc. is fully capable of helping your company understand and explore appropriate insurance solutions. Contact us today to get a personalized seasonal business interruption insurance quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.