If a fire causes your facility to be temporarily unusable, what would you do next? Ideally, you would move to a temporary location while your permanent place of business is being repaired. Yet, traditional Property Insurance does not cover this move or a loss of income when a business must temporarily close. With Business Interruption Insurance, also referred to as Business Income coverage, this setback can be minimized by simply adding this coverage to your Property Insurance policy.
What is included in a Business Interruption Insurance Policy?
The following is covered under a Business Interruption policy:
- Compensation for lost income if the facility has to be vacated as a result of disaster-related damage covered under a Property Insurance policy.
- Covers the profits that would have been earned based on previous financial records, had the disaster not occurred.
- Covers operating expenses, such as utilities, that must be paid even though business temporarily ceased.
- Covers expenses of operating in a temporary location while repairs to the permanent location are completed.
Since Property Insurance only covers the cost of physical loss or damage and contents of a business in the event of a disaster, Business Interruption coverage is invaluable in covering the loss of income while the permanent business location is being repaired.
Consult Evergreen Insurance LLC today to learn about all of our business continuity resources.