Business Interruption Insurance

Business interruption insurance protects a business owner against losses resulting from a temporary shutdown due to a fire or other insured peril. Your insurance payout is intended to cover lost net profits and necessary continuing expenses.

There are various types of business interruption coverage available. For example, you might want a policy that includes extra expense coverage in case you have to carry on with business in a different location because of damage at your original place of business.

What’s Covered?

Coverage for business interruption includes income loss and, based on financial history, loss of revenue. If you have to close the business due to an event such as a chemical leak, for example, your policy pays for the anticipated income during that shutdown.

You’ll also be covered for expenses including utilities, vendors, and any other services required for operations. Expenses for operating at an alternate location may also apply during recovery.

How Much Do You Need?

It’s important to maintain adequate coverage to keep your business running. For example, if your claim totals $653,000 but your policy has a limit of $500,000, that leaves $153,000 that has to be paid out of pocket. Your business would then have to pay any financial balance needed to restart operations.

But what if that money isn’t available? Those high out-pocket-costs could keep your company from restarting. That’s why it’s important to work with an insurance advisor who can help you evaluate your risk and get your company adequately insured. 

How Do I Evaluate Risk?

Risk management is critical when preparing a business insurance package. Decision-makers need to know what aspects of the business are vulnerable so they can adopt risk strategies that avoid over-expenditures. For example, the level of risk for a demolition company is higher than risk levels for a coffee shop or deli. Our insurance advisors have risk assessment tools that can help you evaluate your business’s risk and make sure it’s appropriately insured.

Ready to get started? Call 916-773-3800 and let’s talk about how to protect your business!