Anyone that operates a business should be covered by a business interruption policy, also known as business income insurance. It’s completely different than typical property insurance that covers physical damage to a building and contents. It’s obtained as part of a commercial property insurance policy or part of a business owner’s policy.
Business interruption insurance protects companies of any size should it need to close or regular business operations must be suspended due to events such as a fire, tornado, vandalism, or rioting. The policies cover:
- Income loss
- Payroll costs
- Payments on business loans
- Mortgage/Lease payments
- Relocation expenses
It also provides protection for a business or its facilities during the rebuilding process. The policies can replace lost income when facilities are destroyed or during a disaster-related slow down. Business interruption insurance typically doesn’t cover earthquakes or floods. Business owners will need to have separate commercial earthquake or flood insurance policies.
The nation has been rocked with a variety of events that amply demonstrate how quickly a natural disaster can occur and the enormous cost incurred. The insurance is especially important for those with brick and mortar businesses and it’s equally appropriate for those with online or home-based businesses that can experience interruptions in their supply chain.
The cost of the policy will depend on multiple factors that include:
- Amount of coverage
- Safety measures taken to protect the business
- Type of business
- Size of the business
- The location of the business
- Number of claims the owner has submitted
A business interruption insurance policy provides individuals with peace of mind knowing that their livelihood is protected when the unexpected happens. It can take months to rebuild and re-establish normal commerce following a disaster and the policies perform multiple functions. Business owners should always shop around to obtain the amount of coverage that fits their needs and at the best price.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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