Insurance Business Owners Need, Important Information About Business Interruption Insurance.

By: Advocate Brokerage


Helping you protect your business from potential risks is important to everyone on the Commercial Lines Team at Advocate Brokerage. In an effort to educate each client we serve; we are dedicated to providing important insurance information every business owner needs! This month, our blog will be focusing on Business Interruption Insurance.


What Is Business Interruption Coverage?

Also known as business income coverage, Business Interruption Insurance provides replacement for any business income lost if you are unable to operate due to a covered peril (as defined in the policy). Examples of events covered by a business interruption policy include fire, lightning, wind and theft.  Flood and earthquake perils can also be added.


What Expenses Will Be Covered Under My Policy?

If your building experiences a fire for example and you must close for a period while repairs are being made, you can expect to receive coverage for the following:


  • Revenue your business would have made if it was able to open
  • Any mortgage or rent due during the time your business is closed
  • Payroll
  • Taxes
  • Loan payments
  • Extra Expenses such as Relocation costs


Who Needs A Business Interruption Policy?

If you have a business with a physical location, or you rely on machinery or equipment to run your business on a day-to-day basis, this type of coverage becomes critical. If you already have a Business Owner’s Policy (BOP), then you likely already have some Business Interruption Coverage in place.  A conversation with your insurance advocate can help you determine if your policy provides sufficient coverage.


Final Thoughts From Your Insurance Advocate

It is helpful to have a disaster recovery plan in place. Why? Well, knowing that your security and fire systems are up to date will not only provide peace of mind, it can also help you determine how much coverage you may need. You should also consider how much it would cost to rent space to operate out of in the event of damage to the building, or if renting temporary space is even an option. A conversation with a trusted advisor can be valuable to help you determine not only how much coverage you may need, but also what your coverage limits will be and what proactive steps you can take to prevent a loss in the first place.

There are a variety of factors that need to be considered when it comes to creating a Business Interruption Insurance Policy that is sufficient for your business. If you would like more information, please feel free to get in touch with us. Together we can discuss your specific needs and create a customized policy that suits your business.

We hope that you found the above information helpful!

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