What Is Business Interruption Insurance?

5/13/2022 (Permalink)

Imagine your commercial property in St. Louis, MO burning, flooding, or being swept away in a tornado. Now, picture the devastation caused by the loss of income and business operations during the restoration process. Finally, envision the alternative of being financially stable while your livelihood is being repaired. When your business is closed for an extended period of time, you can rest easier with business interruption insurance.

How Does Business Interruption Insurance Work

Commercial property insurance typically covers cleaning, repairing and restoring your business assets after a fire or a large amount of water damage occurs. Protect yourself further by doing the following:

• Before damage happens, talk to your insurance agent about adding on business interruption insurance. This is not a separate policy, but rather an add-on to your current commercial insurance or part of a policy package. Do not assume you have this type of insurance and do not wait until after fire or flooding occurs to look into this preventative measure.

• After damage occurs, such as from a broken pipe or fire, first call a reputable fire and water restoration company. The experts come to your property, assess the damage and immediately make a plan for cleanup and restoration. Second, call your insurance agent. If the restoration plan is covered by your commercial insurance and entails closing your business for a lengthy period of time, business interruption insurance kicks in.

• Look into the details of your insurance plan. This additional insurance typically covers lost wages, including employee pay, and business operating expenses that occur while the property is closed for reconstruction due to damage.

• Keep the timing in mind. Usually, this insurance takes effect two days after the damage occurs and lasts until the business returns to normal operations. Reopening is likely to occur within thirty days from the time restoration is complete.

When a disaster occurs and your business in St. Louis, MO is on hold, your life moves on. The restoration expert helps your business return to preloss condition after flooding or flames, while business interruption insurance helps you remain financially stable during this period.