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Are you covered in case of a business interruption?

1 minute read time

Don’t let the loss of your facility stop you from keeping you open for business.

If a large loss causes your facility to be temporarily unusable, what would you do next? Ideally, you would move to a temporary location while your permanent place of business is being repaired. Yet, traditional Property Insurance does not cover this move or a loss of income when a business must temporarily close. With Business Interruption Insurance, also referred to as Business Income coverage, this setback can be minimized by making sure you have adequate coverage in place.

What is included in a business interruption policy?

A business interruption policy typically covers:

  • Compensation for lost income if you have to vacate your premises as a result of disaster‐related damage covered under a Property Insurance policy
  • Compensation for partial lost income if you are operated at a limited capacity due to a covered loss
  • Profits that would have been earned based on previous financial records, had the disaster not occurred
  • Operating expenses, such as utilities, that must be paid even though business temporarily ceased
  • Expenses of operating in a temporary location while repairs to the permanent location are completed
  • Payroll for professionals, officers, executives, department managers and employees under contract, all of which covered as a necessary, expense. Ordinary payroll can be included or excluded depending on your needs
  • Optional coverages are available for lost income due to losses outside your facility, such as a loss at a key supplier, a loss at a neighboring facility blocking access to your location, or an offsite utility interruption or power or water

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