If you’re a business owner, you know that there are many risks to your business. One of these risks is the interruption of business due to a variety of events, such as natural disasters, or even theft.
This is where business interruption insurance comes in.
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What is Business Interruption Insurance?
Business interruption insurance is a type of coverage that replaces your lost income in the event of an emergency.
This can include things like fire or natural disasters, and it’s often included with property/casualty policies but also available as add-on riders for those who want extra protection against downturns at their businesses!
Business interruption insurance is not sold as a separate policy but is an add-on to an existing insurance policy.
This can include things like fire or natural disasters, and it’s often included with property/casualty policies but also available as add-on riders for those who want extra protection against downturns at their businesses!
Business interruption insurance is not sold as a separate policy but is an add-on to an existing insurance policy.
What is covered with business interruption insurance?
Most business interruption insurance covers the following items:
Profits: If the event had not occurred, then based on prior months’ performance a policy will provide reimbursement for profits that would have been earned.
Taxes: Business owners should have disaster tax coverage to make sure they can pay their taxes on time and avoid penalties.
Employee wages: Employee wages are a business owner’s security blanket. Coverage of payroll helps them avoid dismissing people and going broke while shutting down their operation
Temporary location: The cost to move your business temporarily can be very high. However, there are some policies that cover these expenses for you.
Commission and training cost: This will cover the cost of replacing machinery and retraining personnel on how to use new equipment.
What is not covered by business interruption insurance?
It’s important to note that business interruption insurance does not cover every possible business interruption scenario.
- Does not cover business interruptions that are caused by natural disasters such as earthquakes.
- Does not cover business interruptions caused by outbreaks of war.
- Most policies will not cover lost profits due to a slowdown in business due to the pandemic.
- Does not cover lost revenue due to a change in consumer preferences or a decline in the overall economy.
It is important to check your policy documents for specifics of what cover is provided by your insurance as each policy is different.
Do I need business interruption insurance?
If you’re a business owner, you know that there are many risks to your business.
One of these risks is the interruption of business due to a variety of events, such as natural disasters, or even theft. Business interruption insurance can help to protect your business in the event of an interruption.
This type of insurance can reimburse you for lost income and expenses incurred as a result of the interruption. It can also help to cover the cost of relocating your business. Whether or not you need business interruption insurance depends on the type of business you have and the level of risk you’re willing to take.
However, if you want to protect your business from the financial effects of an interruption, business interruption insurance may be right for you get in touch today to find out more and speak to our team.
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To discuss your requirements and to receive a free quote contact the team at Falcon Insurance today
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