Business Interruption (Business Income) Insurance explained

Business interruption insurance can be as vital to your survival as a business as fire insurance. Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms.  How would your business manage if a fire or other disaster damaged the business premises so that they were temporarily unusable?  Business interruption can be added to a property insurance policy.  A business closed down completely while the premises are being repaired may lose out to competitors. A quick resumption after a disaster is essential. 

Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire.  It covers profits and other operating expenses, like electricity, that continue.  Ensure policy limits are sufficient to cover your company for more than a few days. After a major disaster, more time may be needed than anticipated to get back on track. Generally, there is a 48-hour waiting period before coverage starts. 

Pricing is related to the risk of a fire or other disaster damaging your premises. The price may be higher for a restaurant than a real estate agency because of a greater risk of fire.

Extra expense insurance reimburses your company for expenses incurred, over and above normal operating expenses, to avoid having to shut down during the restoration period. Extra expenses are usually paid if they help to decrease business interruption costs.  To discuss this or any other business insurance product please contact me:

David Jones

800 590-2531

david@davidjonesinsurance.com