Commercial Insurance

Business Interruptions: Are You Covered by the Proper Policy?

By October 6, 2017 No Comments

Sometimes, natural disasters aren’t the only types of weather situations to cause a business interruption. Whether it’s a flash flood, or heavy winds that steam-rolled through your neck of the woods, you’ll want to ensure that you’re covered in times of need. Business interruptions can happen at any time because of the unpredictable weather, and you should always be prepared. If you’re confused on what types of coverage policies exist for business interruptions, you’ll want to continue reading.

Investing in Business Income Insurance

When disaster strikes, whether fire, wind or rain, you should always be concerned of your income, as well as the property lost during the event. After something occurs that causes you to shut doors for a period of time, you’ll want to make up for that lost income and business interruption. Investing in the proper business income insurance will allow you to design an economically efficiency plan to cover your losses when your business becomes suspended.

Even after your business re-opens, you may see a seriously decline for months until things pick up again. The proper business income insurance will define losses as net profits, and even those expenses that are continuing, like the employee payroll; after all, they also thrive because of your business. It’s also worth mentioning that extra expenses incurred during and from recovery may also be covered in your business income insurance.

Think of it this way: a business income insurance policy is typically disability insurance for your business – whether small or large.

What’s Covered in a Typical Interruption Policy?

You may be wondering what exactly is covered in your standard business interruption policy, and it may differ from place to place, but generally, you’ll receive:

  • Expenses to rent out a temporary location – shows that you want your business to still thrive and bring in income despite what occurred
  • Operational expenses even when your business isn’t open; this may include rent, utilities, other bills
  • Any profits that weren’t earned because of the business interruption that occurred – you’ll have to prove this with previous financial reports
  • Lost income compensation – while you won’t just “receive a ton of money”, you’ll speak with a representative and discuss compensation based on damages covered by property insurance

The aforementioned type of policy is one of the most imperative plans that you can invest in for your business. It means that you want to provide a safety net for not only yourself, but your employees, also. When they know that you have their back, a better environment will arise, and your business will thrive even further.

Even though a business interruption policy is typically overlooked because business owners think they’re invincible, it only takes one time for the insurance policy to be needed. Don’t be that person, as disaster can happen to anyone. If you plan on running your business for decades to come, you’ll want to be prepared for when something happens, as business interruptions are inevitable at least once in a lifetime.

Contact OIG Insurance today to make sure your business is prepared: