Understanding Business Interruption Insurance

7/14/2022 (Permalink)

If a disaster strikes, having business interruption insurance provides needed financial relief to help stay afloat.

Business Interruption Insurance

If a fire happens at your Lake Elmo, MN, business, it means unexpected downtown and other financial losses. While waiting for a professional fire restoration company to get the property back up and running, there are still added expenses. Business interruption insurance is one way to help ensure recovery from the loss.

What Is Covered?

Knowing that the unexpected happens, a successful business needs to plan for those situations. While there are many ways to plan for that, it is also necessary to consider insurance. This type of additional coverage provides added peace of mind. While every policy is different, most will cover:

• Sales or revenue lost if operating normally
  
• Expenses associated with temporary relocation
  
• Rent or lease payments
  
• Utility services
  
• Taxes and loan payments
  
• Employee payroll
  
• Additional related expenses incurred
  
  

Business owners should thoroughly understand what is and isn’t covered, as well as know the coverage limits. This type of coverage is for financial losses, not property, which should be covered under general liability. In most cases, it won’t provide coverage for contingent or partial interruptions or ones not related to damaged property.

Business Fire Restoration Period

In most cases, it takes 48 to 72 hours for coverage to begin after a claim is accepted. It’s also important to note that regardless of the policy, it will include a restoration period. This is a set time frame that funds will be received after the claim is accepted. In many cases, the benefits will last up to one year. Of course, providers will expect that fire cleaning and other restoration services are being handled as quickly as possible.
While a successful business may be focused on growth and day-to-day operations, it also has to consider how it may be affected by unexpected events. If a disaster strikes, having business interruption insurance provides needed financial relief to help stay afloat.