How to Build a Business Recovery Plan That Works

That’s where business interruption insurance comes in. This coverage exists for one reason: to help you get back on your feet—financially and operationally—after a setback.

What Is Business Interruption Insurance?

Business interruption insurance is like a financial bridge. If a covered event (like a fire or windstorm) shuts down your business temporarily, this coverage helps you:

• Recover lost income
• Pay fixed costs like rent and utilities
• Keep your business moving forward while repairs are underway

Please note that business interruption insurance doesn’t take effect immediately! There’s usually a short waiting period, about 48 hours. But once it kicks in, it helps lighten the financial load while you work on getting back to normal.

What Types of Business Interruption Coverage Are There?

Business interruption insurance comes in a few forms, each designed to cover a different type of setback. Here’s a quick look:

1. Business Income Coverage
   This is your “keep the lights on” coverage. It helps replace lost revenue and pay essential bills while your business is closed for repairs.
2. Extra Expense Coverage
   Sometimes, staying open means getting creative. Whether renting equipment, relocating temporarily, or retaining key staff, this coverage helps cover extra costs beyond your usual expenses.
3. Contingent Business Interruption Coverage
   Even if your building is fine, you could still be impacted if a supplier or key partner can’t deliver. This coverage steps in when your operations are interrupted due to a disaster elsewhere in your supply chain.

A Good Plan Makes a Big Difference

Insurance is a great safety net, but pairing it with a simple recovery plan can make a stressful situation much more manageable.

Keep Lines of Communication Open

• Have a plan for updating your clients, even if you can’t open your doors.
• Use social media, email, signage, or your website to stay in touch.

Prepare for the "What Ifs"

• Would you need a backup power source?
• Could you use a temporary location or work remotely for a while?
• Who would you call for repairs or cleanup?

Asking yourself these questions now will save you a lot of headaches later.

Back-Up Your Business Info

Keep copies of critical records somewhere safe, either off-site or digitally. This includes:

• Employee and vendor contact lists
• Insurance documents
• Inventory lists and equipment details
• Photos of your workspace and assets
• Emergency vendor contacts (like plumbers or restoration crews)

Talk With Your Vendors and Partners

Your business depends on others, too. If you rely on outside suppliers or partners, it’s worth having a quick conversation about their emergency plans—just in case.

Check Your Space

Every now and then, do a walk-through of your business space. Look for electrical issues, gas leaks, or structural damage before they become problems. Finding fixes when they’re small saves a lot of resources!

Know What You Need to Stay Open

If a full closure isn’t an option, figure out what your business needs to run in a pinch. Could you temporarily move to a new location? Can certain services be offered remotely? Knowing what’s essential makes pivoting easier when the pressure is on.

Want a helpful checklist? The Business Recovery Checklist at fema.gov is a great place to start.

You’re Not Alone—We’re Here to Help

Thankfully, you don’t have to go through recovery planning alone. Business interruption coverage and a thoughtful plan can help you weather a challenging situation with confidence and come out stronger on the other side.

Contact Leavitt Group Texas Select to discuss your current coverage, what might be missing, and how to build a recovery strategy that fits your business.

Note: Damage due to flood is excluded from most property policies.
Reference: www.iii.org