The Value of Business Interruption Insurance

The Value of Business Interruption Insurance

Most businesses are familiar with the basic forms of business insurance. Liability insurance, for example, protects you from losses claimed in a business-related accident which causes bodily injury or property damage to someone else.. Most are also familiar with property and casualty insurance that will cover physical property and inventory losses. You may be less familiar with a form of business insurance that can make sure the income of your business is protected in a covered calamity. This is called business interruption insurance and it can be valuable to both newer and established businesses.

Business interruption insurance replaces income lost when businesses can’t be conducted, most frequently, due to a covered loss. Not only can business interruption insurance replace anticipated lost income, it can also provide for covering operating expenses. Beyond average operating expenses, business interruption insurance can also provide for moving expenses to a temporary location, taxes, payroll and even business loan payments. While many businesses that have been victim of a fire, hurricane or tornado may struggle through a rebuild and reopening, those with business interruption insurance have another layer of protection.

There is usually a 48-72 hour waiting period before the benefits of a business interruption policy kicks in, but when it does, many policies provide coverage for the policyholder for up to a year. This is a full year when the business owner can rebuild and restock his business, knowing that his normal business expenses will be covered without having his doors open. The peace of mind alone can be well worth the premium for this valuable coverage.

There has, of course, been much discussion recently on business interruption insurance and issues surrounding COVID-19. Policies that contain “Exclusion of Loss Due to Virus or Bacteria Endorsement” would not provide for such coverage. In addition, there is an on-going debate on whether a virus causes “physical damage” to a business like a natural disaster. Some of these issues will likely be resolved between insurance companies, their insureds and the courts.

Can business interruption insurance be of value to you moving forward? We invite you to contact one of our independent business insurance professionals to discuss your situation. They can explain what is and isn’t included in any coverage and get competitive quotes from multiple resources. You can then decide if this coverage is valuable for you.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Using Your Smartphone to Enhance Your Life

Get More From Your Smartphone with These Life Enhancing Ideas

What You May Not Know About Electric Vehicles

If You Haven’t Been Keeping Up, Electric Cars Are Coming Into Their Own

What You Should Know About College Living Spaces

There are More Off-Campus Living Choices Than Ever

Things You May Not Know About Radio

You May Listen Almost Every Day and Still Not Know These

The Dramatically Changing Workplace

It Seems to Have Happened So Fast, Didn’t It?

Life’s Important Numbers

Not Including Your IQ, These Numbers Could Impact Your Life Most

Want an SUV? Could It Be a Porsche?

You Can Still Get a Porsche Even if You Are Committed to an SUV

Five Surprisingly Easy Home DIY Projects

Try These Confidence-Building DIY Projects

The Humble Little Red Wagon

It was Known as the Radio Flyer Red Wagon and There was Nothing Like It

Special Events Insurance

Is There a Bounce House in Your Future Promotional Plans?