If a fire or other type of disaster causes your business’s facility to become temporarily unusable, what would you do next? Ideally, you would move to a temporary location while your permanent place of business is being repaired. But would you have coverage? Traditional property insurance typically does not cover this move or a loss of income when a business must temporarily close; what you need is business interruption insurance, also referred to as business income coverage, which can be added to your property insurance policy.
What is Included in a Business Interruption Insurance Policy?
- Compensation for lost income if your company must vacate its premises as a result of disaster-related damage covered under a property insurance policy.
- Coverage for the profits that would have been earned based on previous financial records, had the disaster not occurred.
- Coverage for operating expenses, such as utilities, that must be paid even though business temporarily ceased.
- Coverage for expenses associated with operating out of a temporary location while repairs to the permanent location are completed.
Business Interruption Insurance Considerations
- Business interruption insurance cannot be purchased on its own; it must be added to a property insurance policy or included in a business owner’s insurance policy.
- Policy limits should be sufficient enough to cover a large amount of time to rebuild the permanent business space. Generally the business must be closed for several days before coverage begins, and it does not pay for those days retroactively.
- Price of coverage depends on the risk of disaster to the premises. This may depend on the business location, nature of the business, and how easily the business could temporarily function at an alternate location.
Insurance experts estimate that business interruption insurance is one of the most valuable types of coverage available, and you can rely on the agents at Eaton & Berube Insurance to help you secure it. In addition to Nashua, NH, where our office is located, we are pleased to offer affordable business interruption insurance options in Hudson, Hollis, Brookline, Litchfield, Amherst, Merrimack, Bedford, Manchester, Milford, Concord, Goffstown, Derry, Salem, Londonderry, Windham, Wilton, Mont Vernon, and all of New Hampshire. To learn more, call us today at 603-882-2766 or submit our online quote request form to get started!