Desmond Insurance Blog
The Business Interruption Insurance covers loss of income, in case the business suffers after adversity. It is different from property insurance that only covers the disaster’s physical damage to the company. This kind of policy is not a stand-alone, but an additional coverage on your business property insurance.
Business owners who tend to purchase commercial package insurance must also seek for additional policies to adequately protect the business. The following explains why business interruption insurance is necessary:
Vital for Survival
Without business interruption insurance, it is difficult for companies to reopen without receiving any assistance. Business Interruption Insurance could help the business get back on track a few days after a major disaster. It is because it covers the revenue you should have earned during the business closure period.
Also, some leasing companies would require the lessor to continue paying monthly rent; even the premise is unusable. It wouldn’t be a problem as this type of insurance could handle the leasing expenses, as well as the moving and renting payments needed in case of relocation.
Normal Operating Expenses
Correspondingly, business interruption insurance covers the income while the business is taking time to repair the damage a disaster caused. This policy includes regular operating expenses, like electricity, and water bill, which runs during the interruption.
Businesses typically lose employees while on temporary shutdown. The business interruption insurance avoids this problem by providing coverage of employee wages until the company is good to operate.
Taxes and Loan Payments
Monthly dues such as taxes and loan payments must get paid monthly, even the calamity hits. Also, not paying on time would cause severe debt or even lawsuit, and could result in permanently shutting down the business. Business Interruption Insurance coverage offers payment for taxes and loans, so you can pay on time and avoid unwanted penalties.
Until the company is operational and can generate income, this plan can help in making loan and taxes payments.
Summing Things Up
Look for commercial package insurance which contains appropriate coverage for your business. Include a policy that could help the company to operate after being struck by a disaster. Business interruption insurance would be the best additional policy to protect your company from any unwanted events like fire and calamity.
At Desmond Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (859) 491-5100 or Click Here to request a free quote.