Covering Your Losses with Business Interruption Insurance
Typical property insurance policies cover physical damages and losses. For example, you’d be compensated if your furniture was destroyed in a fire, your office building was damaged by a storm, or your equipment was stolen. This type of coverage helps pay for replacing or rebuilding your property.
However, what can you if your company can’t operate due to property damage and other losses? To protect your company from this kind of loss, you need to purchase business interruption insurance (business income insurance).
Keep Your Company Afloat in Hard Times
Typical business interruption policies cover:
- Revenues lost because of your interruption.
- Fixed expenses like utility bills and rent payments.
- The expenses you incur while temporarily operating in another location.
Your insurance may cover your additional expenses caused by this disruption. For example, you may need to advertise a temporary location. If you want your business interruption insurer to reimburse you appropriately, you must show proof that your property was damaged physically by a covered event.
Determining your business interruption losses means identifying how much your business would’ve earned if these losses hadn’t occurred.
Insurance companies consider your:
- Loss Statements
- Past Tax Returns
- Projected Sales
- Non-Continuing Expenses
You must keep accurate records to properly project your covered business interruption damages and losses.
How to Get Business Interruption Insurance
- Commercial Property Insurance (CPIs) – Add a rider or endorsement to your business’ property insurance to extend your coverage to include business interruptions.
- Business Owners Policies (BOPs) – These small business insurance packages include liability, business interruption, and property protections.
- Commercial Package Policies (CPPs) – You can customize your flexible CPP policies by choosing from various options (which include business interruption insurance).
The Limitations of Your Business Interruption Insurance
Your business interruption insurance also has certain time limits. Make sure to talk about all exceptions and limitations to your policy with your independent insurance agent. Discuss whether or not getting extended business income insurance is the right choice for your company.
Business Interruption Insurance quote
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Protecting your future with us
Whatever your needs, give us a call, have you been told you can’t insure your risk, been turned down, or simply unhappy with your current insurance? Since 1995 we’ve been providing coverage to our customers, and helping people across United States.