While Federal Emergency Management Assistance (FEMA) and other funds may help with recovery costs, many are in the form of low-interest loans that require repayment. Business interruption insurance helps pave the way for reopening in the event of a natural disaster, equipment failure, or vandalism.
Consider business income coverage with extra expense to cover payroll, monthly obligations, and relocation expenses. The premiums are generally inexpensive relative to overall premiums, and well worth the cost, says Mary Frazer from Insurance of the San Juans, especially when you consider the expenses related to a closure. For example, finding and training new employees is often more expensive than keeping them.
Frihauf adds that any well written policy will have at least 6 months of loss of business income. However, he recommends getting covered for 12-18 months as it may take well over a year to be back in business.