What is Business Interruption Insurance?

Business owner holding a closed sign.

What would you do if your business was struck by a natural disaster and had to close its doors for an extended period of time? Unfortunately, most business owners wouldn't have an answer for that question, because they don't have Business Interruption insurance. This type of insurance is designed to protect businesses from the financial impact of unexpected events that cause them to close their doors. If you're not sure whether or not your business needs this coverage, read on to learn more about what it is and how it can help.

What is Business Interruption insurance?

Business Interruption insurance is a type of insurance that can help protect your business from the financial consequences of a temporary suspension of operations. This can occur due to a variety of factors, such as damage to your business premises by a covered peril or even a natural disaster. Business Interruption insurance can help to cover the costs of lost revenue and expenses during the period of interruption, which can help to keep your business afloat until operations can resume. While the details of Business Interruption insurance policies can vary, they all share the same goal of protecting your business from the financial fallout of an unexpected event.

What does Business Interruption insurance cover?

Business Interruption insurance is designed to protect businesses from the financial losses that can occur as a result of a natural disaster or other unforeseen event. The coverage typically includes lost income, expenses related to relocating the business, and the cost of hiring temporary staff. In some cases, business interruption insurance may also cover the loss of important documents or equipment. While the specifics of each policy vary, Business Interruption insurance can provide a vital safety net for businesses that are forced to be interrupted by an unexpected event.

Is Business Interruption insurance included in other policies?

Business Interruption insurance is often included as part of a Businessowner's Policy (BOP) . A BOP is a package policy that includes property insurance, liability insurance, and other types of coverage. Business Interruption insurance may also be available as part of a Commercial Package Policy or a Commercial Property policy. When shopping for business insurance, it's important to understand what types of coverage are available and how they can be best used to protect your business.

Business Interruption can also be included in a Hurricane Protection Plan insurance policy. A Hurricane Protection Plan provides coverage against named hurricanes for commercial properties. It covers expenses incurred for: hurricane preparation, evacuation, sign damage, landscaping, power surge, power outages, business property damage, vandalism, debris removal, food spoilage, tree damage, detached structures, generator and fuel expenses, in addition to all other hurricane related expenses, including interruptions of business, loss of income, business relocation, power restoration, employee and contractors costs, etc.

Contact your local agent

Business Interruption insurance can be a vital part of your business continuity and disaster recovery plan. By having this coverage in place, you can minimize the financial impact of a business disruption. Contact your local insurance agent to find out more about this type of policy and how it could benefit your business.

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