Unforeseen events like a covered property claim can lead to the temporary closure of your business. During such times, Business Interruption (BI) insurance can be a lifesaver, providing coverage for daily expenses, lost revenue, and overhead, among other costs. Larry Burkman Agency in Huntsville, AL is here to help with this brief overview of what business interruption insurance covers and what it doesn’t.
Coverage Offered by Business Interruption Insurance
You can add coverage for unexpected interruptions to your existing business insurance to help continue paying your staff by reimbursing lost income. If your business is forced to close, serving clients or selling products becomes impossible. But, by providing your financial records to understand your coverage eligibility, your business can swiftly rebound.
If you rent a commercial space, BI insurance might pay your landlord (or mortgage company) until you’re ready to reopen. This policy might also cover the costs of setting up in a temporary location for all perils included under your policy. Most business interruption policies will cover your payroll for up to a year.
Business owners can check paying quarterly and annual taxes off their worry list with BI insurance. You might also receive help paying Small Business Administration (SBA) loans depending on your specific policy.
Limitations of Business Interruption Insurance
Business interruption insurance might not cover every situation during an interruption. You’ll still need separate property damage insurance for repairs during restoration. For instance, it doesn’t cover closures due to a cyberattack since separate policies address that. It usually doesn’t cover closures that last less than 72 hours so that it won’t reimburse for closures due to a brief power outage.
Contact Larry Burkman Agency in Huntsville, AL, to schedule a consultation with one of our knowledgeable commercial insurance agents.
