Conducting business can be interrupted for any number of reasons. Most business owners think primarily in terms of fires, followed by natural disasters such as floods, earthquakes tornadoes, or hurricanes. While most policies won’t directly cover natural disasters, the resulting interruption to business will be.
Business interruption insurance provides coverage for loss of income due to fires, natural disasters, and even major illnesses or lack of materials in other parts of the world that disrupt supply chains. The coverage is added to a traditional property and casualty policy, is a facet of a comprehensive policy package, or added as a rider.
The loss of income is paid dependent upon the regular income and financial records of the business. Coverage begins and ends as determined by the individual policy. That can include when the supply chain is repaired or the damaged property is restored to its normal condition prior to the interruption.
The insurance can cover a variety of expenses encompassing property damage, moving to a temporary location, taxes and payroll, employee wages, loan payments, and operating expenses. What many business owners don’t know is that the coverage is also applicable if a government action precipitates a temporary disruption. Policies will have a limit on what the insurance company will pay and won’t cover events such as company scale backs or power outages.
Business interruption insurance is essential coverage that many business owners often don’t believe they need, particularly if they operate in a location that isn’t typically affected by natural disasters. In addition to fire, floods and hurricanes, Florida business owners must also be concerned with sinkholes, even if they don’t operate in sinkhole alley.
Owners of any type of endeavor can benefit from business interruption insurance and it’s an expense that’s well-worth the money. Disruptions and disasters can occur at any time. It’s far better to be prepared than need it and not be covered.
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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