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Business Interruption Insurance
Whether it’s a re, a tornado, or some
other disaster, you never know when an
unexpected situa on could occur, so it’s
always a good idea to take steps to protect
your business. According to the Insurance
Ins tute for Business & Home Safety (Click
Here), at least 25% of businesses that close
due to a disaster do not reopen; however, your business doesn’t have
to be one of them. Purchasing business interrup on insurance as part
of your business insurance policy is one way you can help protect your business in case of a disaster or other loss. This type of coverage can help replace your lost or reduced income or pro ts a er a covered loss, so your company can get back on its feet again.
Here are a few things to know:
What Does Business Interrup on Insurance Typically Cover?
Business interrup on insurance helps protect from your lost earnings in the event you cannot operate your business a er a covered loss or if the loss causes a reduc on in your earnings. This means if you lose income as a result of the loss, you can typically recoup those losses minus the expenses you would have paid anyway. So, if your merchandise was destroyed by a re just before you shipped it out to customers, business interrup on coverage may help you to get some of the related lost income back.
This type of coverage may also help you pay any extra expenses to keep your business running because of the loss. For instance, if you relocate your business temporarily because of the re, your business interrup on insurance would probably not pay for all u li es at your new loca on, but