Are you a business owner? If so, you may want to consider applying for Business Interruption Insurance. This insurance option could be vital to the survival of your business in the event of an emergency, including fires and natural disasters.
Business Interruption Insurance is an insurance coverage option that will replace your business income that’s lost if you have to close down for a period of time. This particular type of policy generally pays out only if the cause of the business income loss is covered in the property or casualty policy. The amount that’s payable is usually based on past financial records.
The coverage provided by Business Interruption Insurance generally is valid from the date that the covered disaster began, until the physical property is repaired and returned to the same condition that existed prior.
What Business Interruption Insurance Covers
- Profits: A policy will provide reimbursements for profits that have been normally earned had the disaster not occurred.
- Fixed Costs: Operating expenses and other incurred costs of doing business.
- Commission and Training: Companies will often need to replace machinery and retrain personnel on how to operate the machinery, which may be covered with Business Interruption Insurance.
- Extra Expenses: Reimbursement will be provided for reasonable expenses, that allow the business to continue operating while the business gets back on its feet.
- Government Interruptions: A business may close because of a government-mandated closure of business premises, that directly causes financial loss. This may be due to street closes or a covered event.
- Temporary Location: Some policies cover the costs involved with moving to and operating from a temporary business location.
- Loan Payments: Business Interruption Insurance can help a business make their monthly loan payments even while they are not generating income.
- Employee Wages: Wage coverage is essential for businesses who do not want to lose their employees during shut down. This coverage allows owners to still make payroll.
- Taxes: Businesses are required to pay taxes even after disaster strikes. Tax coverage ensures that a business can pay taxes in a timely manner to avoid penalties.
Have questions? We have answers! Contact an Agent at Staples & Associates for more information!