Can your small business withstand weeks or even months without revenue? If not, business interruption insurance can be your hero.
Your typical property insurance policy will cover physical damages and losses done to your property if a covered incident occurs like a fire, theft, windstorms, and other such events. But what about the losses that result from having to close your doors as construction gets underway? For this, you may look towards business interruption insurance to be your savior.
Business interruption insurance can provide coverage for:
- Revenue that is lost during the closure.
- Expenses of operating from a temporary location.
- Fixed expenses like rent and utilities.
You cannot simply purchase business interruption insurance however, you must add it on to another viable form of business insurance.
- Business Owners Policy – This is generally for small business owners and provides property, liability, and business interruption.
- Commercial Package Policy – A flexible policy that can be customized to include business interruption.
- Commercial Property Insurance – You can add an endorsement or rider policy that will extend the policy’s coverage to business interruption.