Articles >> Business Interruption Insurance Are You Really Covered?

Yes, you have your building protected and you may have the contents of that building protected but what about the income you generate? What if your daily business was interrupted and you couldnt do business while repairs where being made? Business Interruption Insurance can protect that valuable income stream during your recovery period.

Amazingly, fewer than half of all business owners carry Business Interruption Insurance so when something catastrophic happens, they find themselves without the resources to continue paying the bills or they have to deplete valuable reserves to cover ongoing expenses.p. Expenses such as mortgage payments, vendor invoices, employee salaries and taxes dont stop during the recovery period.

Business Interruption Insurance protects the insured by replacing that valuable income which is lost when a company cant operate normally after a fire, earthquake, hurricane or other major events that cause monumental losses to a business. Another reason to consider Business Interruption Insurance is that it could cover your loss of income should something happen to your business. For example, your major supplier suffers catastrophic losses due to a storm. Their inability to supply the goods would cost you potential or booked sales.

Business Interruption insurance rates are based on a whole host of factors including: business size, number of employees, type of product or service provided. Always work with an experienced agent to get the best price for the coverage you need. Be careful to read the policy when you get it so what you were promised, is actually delivered. Not all Business Interruption insurance policies are the same and are open to legal interpretation. If a loss occurs, make sure you have competent legal counsel to help you through the claims process. Always keep good records somewhere offsite so you can document your income stream history, inventory and data.

The last thing you want is your claim denied because the paperwork was not correct. Even before you file your claim, make sure you have an experienced lawyer to help you get whats rightfully yours so you do not receive an insurance denial. The claims process can be confusing and if you dont file the claim exactly the way it is outlined in your policy, the insurance company could deny it or at least prolong the process. A top insurance law firm can review your policy with you and determine what is the right legal avenue to take given the insurance company requirements and the law.

Here are the triggers for a covered loss:

The business must incur a loss of income caused by a covered peril.

Business operation must be suspended during the recovery time. Suspension doesnt necessarily mean a complete shutdown. Your business can also suffer a significant loss of income if your production is cut due to the interruption.

The loss of income has to happen at the specific location covered by the policy.