Why Business Interruption Insurance is Important

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Business Interruption Insurance is Important

The Importance of Business Interruption Insurance 

Small business owners will not hesitate to buy coverage insurance to protect their entity due to physical damage to the property or liability protection. What if something happened to their business that made it temporarily unusable? Today, too many business owners skip over this fact. Fortunately, business interruption insurance is there to protect their business in a small way.

What is business interruption insurance?

Business interruption insurance is a type of insurance that covers the loss of income that a business suffers after a disaster. If your business is forced to close after a covered disaster, the insurance policy can help you to get back on your feet while you work in a temporary location and continue to make payments. Perils that business interruption insurance cover include:

  • Fire
  • Hail
  • Windstorm
  • Water damage
  • Vandalism
  • Equipment damage

What does business interruption insurance coverage?

Business interruption insurance is designed to cover your finances when your business grinds to a halt because of a disaster. You will be reimbursed for the revenue that you could earn during the closure. It helps to put a business in the same financial position it would have been in if no loss had occurred. This policy covers:

  • Profits: Compensates you for lost income if the business must be vacated due to the disaster. It covers the revenues you would have earned.
  • Temporary location: Some policies cover the expenses for moving and operating from a temporary location.
  • Extra expenses: This policy covers operating expenses, like rent or electricity, that continues even though the business activities are halted.

Are you ready to find the right business interruption insurance to protect your company? To find quality insurance for all of your business needs, contact the professionals at Chambers & Company Insurance Brokers.


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