Be Prepared for the Unexpected with Business Interruption Insurance

5/21/2022 (Permalink)

Business Interruption Insurance

If a fire breaks out in your Norwood, RI, business, it has the potential to bring operations to a halt. Business interruption insurance is designed to help businesses stay afloat while a professional fire damage restoration company gets the property back to how it was before the loss.

What Does It Cover?
While a general policy is designed to cover the property loss after a business fire or other unexpected event, interruption insurance is an additional layer that focuses on the financial side of dealing with the loss. In most cases, coverage includes:

• Potential profits lost
• Fixed operating expenses
• Temporary relocation costs
• Payroll
• Loan payments and taxes
• Other expenses incurred as a result of the loss
  
  

Like with other policies, there is a coverage limit. Businesses should work closely with their provider to determine how much coverage would be needed if disaster strikes. To maximize the coverage, it is recommended that businesses develop a contingency plan to help ensure that if an event happens that stops operations, they will be able to recover as quickly as possible. 

How Long Does Business Interruption Coverage Last?
These add-on policies typically include a restoration period. Although every policy is different, the coverage often lasts for one year. After the claim is filed, a business should expect to wait up to 72 hours before the restoration benefits start. During that year, it is imperative that a business a set plan in motion for fire cleaning and other restoration services. After the 12 months is over, the benefits will stop even if the property is still under repair.
Along with the hassle of dealing with a fire, it may also mean a business interruption that is difficult to recover from. By having an additional layer of coverage, businesses have the means to rebuild and stay in business.