An interruption in your day-to-day business operations can eat away all your profits. If your business isn’t open, you won’t be able to generate the revenue you need to move forward. However, there are insurance policies available that will help you get through an interruption in your business. These policies are designed to help you pay for your day-to-day operating expenses. While this policy won’t generate any income, it will provide you with the money you need to stay in business.
Causes of an Interruption in Business
An interruption in business can be caused by many things. A good example will be if your building gets damaged in some way by a fire in a neighboring building or a car runs into your property and damages your fence or the building itself. You may have to close your doors until the property is repaired. This means no income will be generated, but your bills still have to be paid. No matter what type of business you have, business interruption coverage should be high on your list of priorities.
What Is Covered?
Business interruption insurance is designed to cover most of your operating costs. It may also provide you with earned profits coverage based on your previous income for the past few months. It will also pay for you to open your doors at a temporary location. Property taxes, electricity, natural gas, and other expenses that are paid every month will all be covered. You may also need to purchase additional supplies to operate efficiently in your temporary location. In some cases, your insurance may also cover training expenses if they are required.
What Is Not Covered?
Business interruption insurance will not cover anything that is normally covered by a standard commercial policy. This includes both general and professional liability coverage. Workers’ compensation coverage and commercial fleet or auto insurance are also not covered by a business interruption policy.
You Need Both Types of Coverage
Business interruption insurance is not a stand-alone policy and cannot be purchased by itself. In order to obtain a business interruption policy, you will need to already have a commercial policy in place. Both policies work together to provide you with comprehensive coverage that will help you make it through difficult periods where your business may not be able to operate. While commercial insurance protects your business and its assets, a business interruption policy will help you protect your business’s operations and potential income.
Call our agents at Steve Wilk Insurance Agency Inc. today to find out how a business interruption policy can help you stay ahead of the game if you need to shut down for a few days or weeks. We have the answers that will help you stay in business. We will help you operate even when your doors are closed due to unforeseen events.