Business Interruption Insurance Helps Small Businesses Handle the Unexpected

Business interruption insurance helps businesses maintain financial stability, even if they must relocate or temporarily close to allow for repairs after a covered event.

The Cormack-Routhier Agency in Cranston, Rhode Island, can help you get appropriate business insurance to help support your organization through difficult times.

What Is Business Interruption Insurance?

Business interruption insurance, also called business income insurance, can help replace lost income after a covered loss, such as storm damage. For example, if a windstorm causes property damage and you can’t do business while your property is under construction, you may be forced to close temporarily.

Business interruption insurance is one of the three core coverages included with a business owner’s policy (BOP). A BOP typically includes commercial property insurance, general liability insurance and business interruption insurance. Your agent can help you understand if you may be eligible to purchase a BOP policy.

What Does Business Interruption Insurance Cover?

If you can relocate and reopen at an alternative location, your business interruption insurance helps cover those costs. If you can’t reopen right away, this essential business insurance policy helps pay your regular bills, such as:

– Loan payments

– Taxes

– Mortgage, rent or lease payments

– Revenue your business would make if it were open

– Payroll for employees

Depending on details about your business interruption insurance policy, your company may have coverage for additional expenses. Your agent can help you choose and understand a policy that’s appropriate for your operation.

What Doesn’t Business Interruption Insurance Cover?

After a covered loss, there’s typically a waiting period of 48 to 72 hours before your insurance coverage kicks in. You can find out when your business interruption insurance coverage starts by checking your policy documents.

A typical business interruption insurance policy may exclude the following:

– Flood or earthquake damage, which you’ll need to cover with a separate policy

– Utilities, since they are typically turned off if your business closes due to property damage

– Communicable diseases causing your business to shut down

– Broken items resulting from a covered loss or event

How to Get Business Interruption Insurance

To learn more about how to get business interruption insurance, contact the business insurance experts at Cormack-Routhier Agency. They can help you understand the potential benefits of this business insurance policy and get personalized quotes from reputable insurers.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.