Business closure insurance is a special form of business interruption insurance. It protects companies against the financial consequences of business closures due to official orders.
These can be due to epidemics, epidemics or pandemics, for example. Having to follow such an order to close down a business can be existentially threatening for companies. As a rule, no or only very low revenues are generated as a result of the closure, but costs such as rents, warehousing, salaries, etc. continue to be incurred, at least for a while.
Plant closure insurance can provide companies with financial protection in such cases.
In general, companies and industries that have a higher risk of being threatened with closure due to regulatory orders should consider business closure insurance.
These include, for example, hotels, restaurants, event venues, gyms and retail stores.
Companies operating in areas more likely to experience epidemics, epidemics or pandemics, such as food production or healthcare, should also include business closure insurance in your risk coverage.
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