Firearms Insurance Agent Blog

Understanding Business Interruption Insurance for Shooting Ranges

Running a shooting range involves unique challenges, especially when unforeseen circumstances lead to unexpected closures. From natural disasters to major equipment failures, such interruptions can significantly impact your revenue and the financial stability of your business. This is where business interruption insurance becomes a game-changer.

The Essence of Business Interruption Insurance

Business interruption insurance is designed to protect your shooting range from losses that occur when you can’t conduct business as usual. It covers lost income during periods when you have to shut down temporarily due to covered perils like fires, storms, or other insured disasters.

• Covering Your Lost Income: The primary role of this insurance is to compensate for the income your range would have earned during the period it was closed.

Additional Expenses Coverage

Besides just replacing lost income, this insurance can also cover additional expenses incurred due to the interruption. For instance:

• Paying for Temporary Locations: If you need to relocate temporarily, this insurance can cover the costs associated with setting up at a temporary site.
• Continuing Fixed Expenses: Expenses such as utilities and lease payments don’t stop when your business does. Business interruption insurance can help cover these ongoing costs.

Calculating the Coverage Amount

Determining the right amount of coverage is critical. You need to consider:

• Projected Revenue: Look at your range’s historical earnings and project potential future earnings to estimate the coverage amount you need.
• Duration of Coverage: Business interruption policies typically have a restoration period, which is the maximum time the policy will pay out after a covered loss.

Understanding Policy Limitations

It’s important to understand what your policy does not cover. Standard business interruption insurance might not cover:

• Interruptions Due to Pandemics: Some policies exclude losses due to diseases or pandemics, so always verify the specifics of your coverage.
• Undocumented Income: Ensure your financial records are thorough and up-to-date, as insurers will base your compensation on documented earnings.

Taking the Next Step

For shooting range owners, understanding and obtaining the right business interruption insurance is critical. To discuss your specific needs and find the ideal coverage for your shooting range, contact Firearms Insurance Agent at (855) 486-2667. Our team specializes in crafting insurance solutions tailored to the unique risks and needs of shooting ranges, providing you with peace of mind and financial security.