Ensure you cover losses with business interruption insurance.
Disasters can strike at any time, causing many companies to go under. Even the ones that don’t, may have to close their doors to recover temporarily. When a major accident hits, most businesses turn to their insurance for the coverage and protection to rebuild.
Standard property insurance covers physical damage and losses, such as equipment in a fire. However, you may be on your own if you need to close the doors to recover. Here’s how to cover losses with business interruption insurance.
When your business is shut down due to a damaging event, you lose revenue as well as ongoing expenses. If you have business interruption coverage, many of these costs and losses can be reimbursed. Business interruption insurance will cover:
- Revenue lost due to the closure
- Fixed expenses, such as rent and utility costs
- Expenses of operating from a temporary location
For a business loss to be covered, there must be physical damage caused by a covered peril, such as fire or explosion.
In addition to covered perils, there are other types of coverage that may apply to some policyholders.
- Extra expenses: Extra expenses are those costs that a business operator incurs as a result of a covered period to avoid or minimize his or her business income loss. These extra expenses are covered to the extent that they reduce the amount of loss of the insured.
- Extended period: Some policies provide for an extended coverage period to allow a business to return to normal operations. This period is often limited and is in addition to the period of restoration.
Take it in your hands to protect your company’s livelihood with business interruption insurance. Determine the right insurance coverage to suit your needs by contacting the professionals at Nahai Insurance Services today.