Business Interruption

There are few things more important than continuous revenue and cash flow, particularly for small to medium-sized business. In fact, just one brief business interruption can be incredibly costly for a business, often leading to serious reputational damages or long-term closures.

WHAT DOES BUSINESS INCOME INSURANCE COVER?

This form of coverage provides protection against a variety of common interruptions, including natural disasters, equipment damage and vandalism. The following are major benefits bo business interruption insurance:

1. Revenue - In the event of a disruption, business interruption insurance provides coverage for income your business would have earned during a closure period if it had been operating normally.
2. Rent or lease payments- Even if your premises are unusable following a disaster or other event, many leases still require that you make payments. Business interruption insurance allows you to continue making rent or lease payments, even while your business is not operating.
3. Relocation- In the event that your primary location is unusable following a disaster or other event, you will likely have to relocate in order to remain open and continue generating revenue. Business interruption insurance can cover the expenses of moving your business to a temporary location and may include both moving and rent costs/
4. Employee wages – if you are unable to operate, it is likely you will not be able to continue paying employees. Busines interruption insurance can help you avoid losing staff while you’re closed by ensuring that you make payroll.
5. Loan payments – If you have an outstanding loan, you will need to continue to make payments even if your business isn’t fully operational. Business interruption insurance will ensure you never miss a payment until you are fully operational again. 

CONSIDERATIONS FOR BUSINESS INTERRUPTION INSURANCE:

Here are some things to think about if you’re considering Business Interruption Insurance:

• Business Interruption Insurance cannot be purchased on its own; it must be added to a Property Insurance policy or included in a Business Owner’s Insurance policy.
• Policy limits should be sufficient enough to cover a large amount of time to rebuild the permanent business space. Generally, the business must be closed for several days before coverage begins, and it does not pay for those days retroactively.
• Price of coverage depends on the risk of disaster to the premises. This may depend on the business location, nature of the business and how easily the business could function at an alternate location on a temporary basis.

WHY WE’RE DIFFERENT:

You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…

While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.

There’s no such thing as a one-size-fits-all insurance policy when it comes to your business.

We’re your neighbors. We protect businesses and people we know and care about, and that means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.

Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.