How business interruption insurance takes care of extra expenses.
When your business faces extra expenses as a result of a covered loss, business interruption insurance can step in to help. Business interruption should be an essential part of your insurance protection to provide cover against both a loss of income and additional expenses from an insured accident.
Often included in a Business Owner’s Policy as part of its property coverage, business interruption insurance offers benefits when a covered property event forces a business to close down temporarily.
Common coverage in this policy includes:
- Revenue: This is the income your business would have earned during the closure period if it were operating normally.
- Rent or lease payments: Most leases require the renter to continue making payments, even if the premises are unusable.
- Relocation: Covers the expense of moving your business to a temporary location. Coverage many include moving fees and renting expenses.
- Employee wages: This is essential if you don’t want to lose employees while you’re shut down. Your coverage can help you make payroll when you’re unable to operate as a business.
- Taxes: Disasters don’t deter taxes. Taxes will still need to be collected, and insurance can help you do so.
- Loan payments: Loan payments are often due monthly, so your coverage can help you make those payments.
- Losses: Covers losses caused by covered damage that prevents access to a building. For example, if a government implements a citywide curfew that keeps people away from your business, insurance can help.
The extra expenses that come along with a disaster don’t come cheap. With business interruption insurance, your company has the best possibility of surviving any storm and coming back stronger. To get started on securing the right policy for your business’s risks and needs, visit the expert team at Nahai Insurance today.