If you have a fire or water emergency, please call us now at (425) 255-2227

To have the optimal experience while using this site, you will need to update your browser. You may want to try one of the following alternatives:

Fire & Water - Cleanup & Restoration

Understanding the Terms of Business Interruption Insurance

9/25/2019 (Permalink)

Bathroom flooded Commercial bathroom flooded in Newcastle, WA

When a broken pipe leads to flooding, your Newcastle,WA, organization could be out of business for days or months, depending on the extent of the damage. Without the appropriate protection, this could lead to huge financial losses. Fortunately, commercial property insurance and business interruption endorsements are available to help offset those losses.

Understand Important Insurance Terms

For the best results, make sure you understand some of the terms your insurance agent may use. The better you understand how your coverage works, the better prepared you'll be to work with insurance agents, cleaning and restoration technicians, and other professionals.


Actual Loss: This refers to the business interruption losses you experience as a direct result of physical property damage.
Business Income: This is the net income you would have earned if you had continued operating normally. This typically also includes expenses you would have incurred, including payroll.
Period of Restoration: This is the time frame covered by insurance, beginning at the moment when large water damage occurs and ending when your property should be restored.


Of course, you should always read the insurance policy declaration page that provides all the details of your coverage, including the time period, the insurer's responsibilities, and perhaps your duties, as well.

Protect the Extent of Your Coverage

In many cases, one of your responsibilities when flooding interrupts your business is to immediately inform the insurance company. You're also responsible to prevent further damages from happening. It's very important that you understand what your policy covers and does not cover. In many cases, trying to clean up water damage on your own could negatively impact your compensation from the insurance company. On the other hand, many insurers work directly with water damage remediation companies.

Large scale flooding and other disasters can lead to heavy financial losses. The more you know about business interruption insurance, the better prepared you'll be to minimize those losses and recover from the catastrophe.

Other News

View Recent Posts