When something goes wrong, there are a multitude of variables that can make one small calamity affect many parts of your business.
If you have a Business Owners Policy, a key facet of that coverage is your business interruption insurance.
What exactly is a covered interruption?
If your business suffers due to certain disasters, this coverage can buffer for you while repairs are being made.
Do you need to temporarily relocate your company after leaky pipes caused damage to office ceilings?
Do you need help paying employees while waiting on replacement machinery that was vandalized?
Do you need rent or lease money during renovations following a fire?
All of these scenarios are ways interruption insurance could make the difference between losing profits due to a time-lapse in your business.
Some of the ways business interruption insurance can make a difference for you if your company faces a disaster are:
Wind, hail, fire, vandalism, theft, and leaky pipes are some perils that could cause damage to your property, also requiring time for repairs or replacement. Terrorism is another, thankfully uncommon, peril that is covered.
Not all interruptions are covered, such as infectious diseases or viruses like COVID-19.
Earthquakes and floods are a separate purchase policy, and broken glass would be an added endorsement to your current policy.
You will need to talk to your agent about those extra coverages if you are in susceptible areas.
Here is an example of how business interruption insurance helped Terrence, an owner of a vacuum cleaner and sewing machine shop:
There was a rise in vandalism over a period of several weeks one spring. Terrence arrived at his shop early on a Monday morning to find his shop door bashed in, and much of his inventory, office area, and computers completely demolished.
It took over a month to get the inventory and computers replaced and the office renovated. During that time, he lost the income and profits he would have normally made.
He also continued paying his employees their regular wages. Thankfully, his insurance policy covered the repairs as well as his extra losses. If it weren’t for his business interruption insurance, he would have had to swallow his lost profits and his employees’ paychecks.
If you are looking into starting your own business and need to discuss your insurance options, give me a call.
I love working with business owners to customize the perfect Business Owners Policy for their specific needs. Business interruption insurance is only one aspect of the available options for you, and I would be happy to work with you to create the policy your company needs.
If you have a Business Owners Policy, a key facet of that coverage is your business interruption insurance.
What exactly is a covered interruption?
If your business suffers due to certain disasters, this coverage can buffer for you while repairs are being made.
Do you need to temporarily relocate your company after leaky pipes caused damage to office ceilings?
Do you need help paying employees while waiting on replacement machinery that was vandalized?
Do you need rent or lease money during renovations following a fire?
All of these scenarios are ways interruption insurance could make the difference between losing profits due to a time-lapse in your business.
Some of the ways business interruption insurance can make a difference for you if your company faces a disaster are:
- Employee wages
- Temporary relocation (should you need to set up a temporary business location during repairs)
- Taxes (helping you avoid penalties)
- Fixed costs (your utilities, for example)
- Commission and training costs (in case you need to train employees in after machinery/equipment replacement due to a disaster)
Wind, hail, fire, vandalism, theft, and leaky pipes are some perils that could cause damage to your property, also requiring time for repairs or replacement. Terrorism is another, thankfully uncommon, peril that is covered.
Not all interruptions are covered, such as infectious diseases or viruses like COVID-19.
Earthquakes and floods are a separate purchase policy, and broken glass would be an added endorsement to your current policy.
You will need to talk to your agent about those extra coverages if you are in susceptible areas.
Here is an example of how business interruption insurance helped Terrence, an owner of a vacuum cleaner and sewing machine shop:
There was a rise in vandalism over a period of several weeks one spring. Terrence arrived at his shop early on a Monday morning to find his shop door bashed in, and much of his inventory, office area, and computers completely demolished.
It took over a month to get the inventory and computers replaced and the office renovated. During that time, he lost the income and profits he would have normally made.
He also continued paying his employees their regular wages. Thankfully, his insurance policy covered the repairs as well as his extra losses. If it weren’t for his business interruption insurance, he would have had to swallow his lost profits and his employees’ paychecks.
If you are looking into starting your own business and need to discuss your insurance options, give me a call.
I love working with business owners to customize the perfect Business Owners Policy for their specific needs. Business interruption insurance is only one aspect of the available options for you, and I would be happy to work with you to create the policy your company needs.
RSS Feed