Business Interruption Insurance: Protecting Your Company

In today’s ever-changing business landscape, unexpected events can halt your company’s operations and jeopardize its financial health. Business interruption insurance can serve as a vital financial shield, safeguarding your company from the economic impact of unforeseen disruptions.

What Is Business Interruption Insurance?

Business interruption insurance can help reimburse lost income and cover typical operating expenses when your company must temporarily shut down due to a range of covered perils, such as a fire, theft or severe weather. This type of insurance is typically included in a business owners policy or in standalone commercial property coverage.

Coverage and Benefits

Business interruption insurance can help with the following costs:

• Lost revenue—This coverage can help replace the income your business would have earned during the closure period.

• Operating expenses—Such coverage may pay for your company’s rent, utilities and payroll, allowing your business to meet its financial obligations even when operations are halted.

• Relocation costs—If you need to move your company’s operations to a temporary location during the closure period, this coverage can help reimburse the associated expenses.

• Training costs—If new equipment is required to resume your company’s operations following a covered peril, this coverage can help pay for the cost of training employees to use it.

Exclusions and Limitations

While business interruption insurance can offer extensive financial coverage, it does have limitations. Standard policies typically do not pay for losses due to floods or earthquakes, as these events often require separate coverage. Additionally, undocumented income and utilities are generally excluded.

Why Your Business Needs Business Interruption Insurance

Interruptions to business operations are among the top threats to enterprises globally. Without business interruption insurance, a temporary shutdown could result in substantial financial losses, putting the future of your company at risk. By securing this coverage, you will have the resources needed to help your company better withstand disruptions and continue to thrive.

Learn More

Contact Best Florida Insurance Services, Inc. to discuss your business insurance portfolio.