Business Interruption Insurance: What It Is & Why You Need It

bigstock-Sorry-Closed-31149Is your company covered for loss of business in the aftermath of a disaster?

Smart business owners know the importance of insuring themselves and their businesses. A standard business insurance policy will cover loss and/or damages to your warehouse, office or store as well as your equipment and inventory.

But what about the loss of profits if your business can’t operate? For that you’ll need an addition to your policy called Business Interruption Insurance. In order to add this coverage to your policy you’ll need to spend some time documenting your current net income as well as previous month’s profits.

Next, you’ll want to calculate your coverage amount. Think about how your business would be affected by potential disasters. This would include all the costs that you would continue to be obligated to pay, even if your business was closed for a period of time, such as rental fees, loans, taxes and payroll (in the case that you would want to keep your workers on your payroll to insure you won’t lose skilled employees while rebuilding).

Carefully review what types of interruptions you’re most likely to need covered. Your interruption coverage will be based on what is covered by your general policy, so if you are covered for fire damage on your standard policy then you’ll be covered for interruption to your business in the case of a fire.

You will also need to consider the effects of loss to your business when related businesses are affected by a disaster. For example if a supplier of yours is unable to deliver your inventory due to a disaster (even if your location was undamaged) then you’ll want to have that scenario covered as well.

Sounds tricky, we know (and for this step we advise contacting us for free comprehensive insurance review report). But, unfortunately, even if you do have all the coverage you need the trickiest part is yet to come…. REIMBURSEMENT.

As we’ve mentioned in our previous blog 5 Ways Hiring a Public Adjuster Will Level-Out the Playing Field, insurance companies employ adjusters whose main objective is to protect the company they work for. This means that they will do everything in their power to negotiate a settlement that is in favor of your insurance company leaving the business owner with the short end of the stick. That’s where we can help you! We do the same as your insurance company’s adjuster, but with our main objective being YOU, the business owner.

We will work vigorously FOR YOU to help maximize the amount of your settlement, while minimizing the aggravations that often arise during the claims process. This will not only help you to get the settlement you deserve, but it will allow you to concentrate on rebuilding your business after a disaster strikes.