What you should know about 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. Even so, the bills, rent, and wages must still be paid. With business interruption insurance, your company doesn't have to take a financial hit along with a disaster.
Sustaining Your Business
When your business is shut down due to a damaging event, you lose revenue and still have ongoing expenses. If you have business interruption coverage, many of these costs and losses can be reimbursed. Typical coverage includes:
- Revenue lost due to the closure.
- Fixed expenses, such as rent and utility costs.
- Expenses of operating from a temporary location.
Your policy may cover additional costs associated with the disruption. For example, the costs related to advertising your temporary location.
Business interruption coverage is not sold as a stand-alone policy. It can be purchased as part of the following policies:
- Commercial Property Insurance: You can add an endorsement to the policy that will extend coverage to business interruption losses.
- Business Owners Policy (BOP): This is intended for small businesses, as it includes coverage for property, liability, and business interruption.
- Commercial Package Policy (CPP): CPPs are flexible policies that can be customized with a range of options, including business interruption coverage.
Ready to get started on your reliable business insurance
Bell Black Insurance. Serving Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming; we are ready to get you covered today.