What is Business Interruption Insurance?

12/26/2020 (Permalink)

Business interruption insurance can help your company stay afloat during an expensive rebuild

There are a lot of moving parts to worry about when it comes to purchasing insurance for your company in Flourtown, PA. One policy that many business owners tend to overlook is business interruption insurance. This type of coverage helps cover your losses while you rebuild after your commercial building suffers massive amounts of property damage.

What Does Business Interruption Insurance Cover?

Business insurance is extremely handy when a covered loss forces your company to close down temporarily. It covers operating expenses such as:

• Relocation costs, if applicable
  
• Taxes, both monthly and quarterly
  
• Rent, lease, and mortgage payments for your commercial building
  
• Employee salaries
  
• Any necessary loan payments
  
• The revenue you'd normally take in if your business was open
  
  

It's important to remember that these types of policies only cover operating expenses. They do not reimburse you for the actual damages, as those are listed under separate policies. Interruption insurance also does not reimburse you for utilities during the rebuild, as there's no reason to have electricity, water or gas running in a building that no one is using.

How Much Does the Insurance Policy Cost?
There are several factors that contribute to how much you'd personally pay for your closed business insurance. These include which industry you work in, the amount of employees you have, your building's location and the amount of coverage you actually want. Buildings that are located in areas that are more prone to natural disasters, such as hurricanes or wildfires, might have to pay more than companies that are located in places that are less danger prone. Talk to your insurance agent to see which types of policies you can acquire and how much you would have to pay for them.
Don't let expensive property damages destroy your company. Business interruption insurance can help your company stay afloat during an expensive rebuild. In the meantime, contact remediation experts for assistance resolving any property damages your commercial building may have suffered.