What Does Business Interruption Insurance Cover?
Business interruption insurance can offset lost revenue following a fire, storm, or another covered peril. Whether the damage calls for repairs or a rebuild, interruption coverage compensates the owners of a closed business for lost income and ongoing expenses.
How Are Coverage Levels Determined?
A business owner can specify any amount of interruption coverage. A business insurance provider will want to know the
- Average daily income
- Ongoing operational costs
- Risk level
- Whether a business can operate out of a temporary location
The cost of a rider on a business insurance policy depends on all of these factors. Work with your insurance provider to obtain the level of interruption coverage you need.
Do These Policies Cover Damage?
Interruption coverage is typically an endorsement or rider on a business insurance policy. This additional coverage may not cover closure due to perils that are not covered by the primary policy, such as earthquakes or floods. This coverage also excludes partial closures that only affect a portion of a property and do not preclude continued operation.
Do These Policies Cover Operating Expenses?
Interruption insurance can cover most operating expenses, such as
- Ongoing utilities
- Rent or lease
- Temporary relocation costs
It may take between 48 to 72 hours for interruption coverage to kick in. This coverage will continue throughout a period of unavoidable closure or a rebuild until the limit is reached.
How Long Does This Coverage Last?
This coverage should be sufficient to offset losses for at least several business days. It may take longer than you think to reopen a closed business. An insurer can help you determine a suitable policy limit.
Maintain detailed documentation of operating costs and revenue for proof of loss in the event of a business interruption. Your business insurance policy should cover the cost of a rebuild and a commercial damage restoration company in Newcastle,WA.