Business insurance; Business interruption insurance

Business income insurance also known as business interruption insurance is business insurance designed to cover lost income if your company temporarily closes due to a fire, natural disaster or another covered peril. 

How business interruption insurance protects your business

Business interruption insurance will cover lost revenue, ongoing expenses and costs to move to a temporary location if your business is forced to close. 

Business interruption insurance is a commercial property insurance rider that is used to cover you if you need close temporarily. It can help pay for;

Lost revenue; This form of business insurance will help to replace lost income you would’ve received if you did not suffer a loss.

Lease and rental payments; These payments are usually due even if your job site is unusable. 

Relocation fees; Moving costs and rental costs are covered under business interruption insurance.

Employee wages; If you are forced to close temporarily, business interruption insurance will help cover payroll.

Loan payments; Business interruption insurance will help to cover loan payments.

Taxes; If your business is temporarily closed due to a covered peril your tax obligations will still be due.

Losses; If customers and employees can not access your company business interruption insurance will help you out until you can reopen. 

What is excluded from business interruption insurance? 

Utilities; Typically utility companies will freeze charges if you are unable to operate.

Partial closings; To qualify your business must be fully closed.

Undocumented income; You will have to prove your income to receive benefits.

Interrupted power; You will not receive benefits if a storm disrupts power lines. 

What companies need business interruption insurance?

Businesses that have commercial property insurance can benefit from business interruption insurance. If your company lacks cash reserves, it may be a good idea to look into busies interruption insurance. The following businesses would all benefit from business interruption insurance;

Building design
Consulting
Food and beverage
Healthcare professionals
Information technology

Manufacturing
Personal care
Real estate
Retail
Wholesale

If you would like a free business insurance quote, please give us a call today at 916 313 6100