Understanding Business Interruption Insurance
Few business owners would operate without insuring their building assets, yet fewer consider protecting the operation of their business. Do you have a plan for relocating should a storm make your building temporarily unusable? Could your business weather such a disruption? Fortunately, business interruption insurance exists to cover you in exactly these circumstances. Here’s a primer on just what this cover entails and how it can help you rebuild in Blaine, TN following a disaster.
What Income Interruption Insurance Is?
Interruption policies help replace lost income and cover extra expenses when a business is impacted by a covered peril. Policies typically cover theft and a variety of weather-related circumstances, from fire and wind to falling objects and even lightning. Fallout from such interruptions can include
- Lost revenue from a temporary closed business
- Destroyed merchandise
- Temporary relocation
- Expenses to rebuild
A common scenario might involve a fire damaging a business, destroying merchandise. An interruption policy could reimburse you both for the lost income from the destroyed merchandise and for expenses that come from temporarily relocating your closed business.
What an Interruption Policy Is Not
Before you buy a policy, understand what isn’t covered. This type of policy does not cover flood damage. Business interruption insurance also is not a separate policy, but rather, an add on to a property insurance policy. Moreover, like any insurance policy, this type of policy has limits to how much coverage you can get and for how long. How long would it take to rebuild and get your business back to normal? Think about this when deciding on coverage.
However it comes, a blow to your business is stressful. Commercial interruption insurance can offer a life raft as you rebuild. Arm yourself with the right knowledge about these policies as you prepare for the unexpected and you’ll be sure to choose the right policy for you.