Why business interruption insurance is an essential coverage.
While most business owners understand the importance of securing general liability, commercial property, and workers compensation insurance; many do not consider business interruption insurance an essential coverage. Here’s why you cannot afford to skip out on business interruption coverage.
- Business Interruption Insurance Basics
Business interruption insurance covers a portion of a business’s lost revenue if it is forced to temporarily shut its doors. Business interruption insurance also offers financial support to pay for a business’s recurring expenses. For instance, this type of insurance can help you cover your business’s rent, utility bills, and employee paychecks.
This coverage kicks in whenever a covered peril causes damage to your business’s physical building or the supplies and equipment that are necessary to complete normal operations. Common business interruption situations include fire, flood, vandalism, theft, extreme weather events, and so on.
- The Cost of Business Interruption Insurance
The cost of business interruption insurance will depend on the nature and location of your business. For instance, if your business often works with fire or dangerous substances, then this increases your business’s risk for damage. Because your risk for business interruption is higher, you will have higher insurance costs. Similarly, if your business is located in an area that experiences major storms or high fire risk, then your insurance rates will also be on the higher end.
This is what you need to know about business interruption insurance. Are you looking to secure the right commercial coverage to keep your company safe? If so, then contact the experts at Scavone Insurance Center in White Plains, New York. Our dedicated team is eager to assist you with all your business insurance needs today.