If you own or manage a business, you should consider business interruption insurance. This form of business insurance is often referred to as business income insurance. The purpose of business interruption insurance is to cover a loss of income stemming from a catastrophic event.
It is usually possible to add this insurance to a current property policy. Alternatively, you may be able to add it as a packaged policy.
Prepare Your Business for Disaster With Business Interruption Insurance
Imagine an instance in which a hazard, such as a fire, interrupts your operations. If such a catastrophic event occurs, your company may lose plenty of money. Business interruption insurance compensates you with the money your business could not make due to the interfering event. This type of insurance is not the same as property insurance that protects items and property. Business interruption insurance provides additional coverage to protect profits.
Every Type of Business can Enjoy Business Interruption Insurance
This form of business insurance benefits companies of every size and style. A catastrophic event may impact every business in the vicinity of the event. There is no foolproof way to completely prevent damage from disasters. Business interruption insurance may leave the company in the same financial standing as it would enjoy if the event did not occur in the first place.
An Example of Business Interruption Insurance
Consider an instance in which a building near your business catches fire. The fire spreads to your facility. It destroys your inventory before firefighters can get the situation under control. It takes your business several months to return operations to normal.
Revenue may drop dramatically during this period of time. Business interruption insurance reimburses your business for the resulting profit loss that is attributable to the fire. This form of insurance has the potential to keep your company in business when it otherwise would have shut down.
Expanse of Coverage
Business interruption insurance usually provides coverage for fixed operational costs. These are the operating expenses the business incurs following the catastrophic event. Examples are electricity bills and monthly rent. The coverage can also provide compensation for unforeseen expenses outside of fixed costs.
However, such expenses must empower the business to continue to function during rebuilding. This form of business insurance even covers temporary relocation expenses. This way, the business can move to a temporary location while repairs occur.
Do you need business insurance? Call Stahlka Agency Inc. at 716-634-7070 right now. Email us today, we can help you get a fast and free policy quote.
Looking for more ways to save and protect your business? Check out our article on Understanding Business Property Insurance and we break down What New York Workers Compensation Insurance Covers.