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Fire & Water - Cleanup & Restoration

4 Things You Should Know About Business Interruption Insurance

5/24/2022 (Permalink)

Visible damage to a commercial building following a structure fire Commercial fire damage in Imperial, MO.

Business Interruption Insurance

Accidents happen. Fortunately, a fire at your commercial property in Imperial, MO, doesn't have to grind daily operations to a halt. If your company is covered by business interruption insurance, you can rest easy that many of your expenses will be taken care of. Here's a quick primer on this useful type of coverage.

1. It Covers a Variety of Expenses
A fire can affect more than just your drywall. Fire damage restoration requires skilled professionals, and the work of resuming "business as usual" takes time.
Nobody tells your operating costs that, though. If you're forced to shut things down after a fire, interruption insurance can cover various expenses, such as:

  • Revenue lost while closed
  • Rent, lease or mortgage payments
  • Employee payroll
  • Taxes
  • Moving costs if you're forced to temporarily relocate during fire cleaning and recovery
  • Training costs for new equipment and machines if your existing gear was damaged or lost

2. Income Coverage Doesn't Kick In Immediately After a Business Fire
Most business interruption insurance policies have a mandatory waiting period before coverage accounts for lost income. This window is typically 48 to 72 hours long, but speak to your insurance agent to get the details specific to your policy.

3. It Doesn't Cover Every Expense
While interruption insurance can cover an array of vital operating costs, there are a handful of scenarios that such a policy does not cover. These include:

  • Utilities
  • Items that are broken
  • Income that's not documented in your records
  • Flood damage
  • Shutdown due to communicable diseases
  • Earthquake damage

4. Its Cost Depends on Several Factors
Once you decide to purchase interruption insurance, your policy's cost will be determined not only by how much coverage you want but also by your industry, how many people you employ and your location, more specifically how high your risk of natural disaster is.
Business interruption insurance is a simple way to protect your investment in the unlikely event that fire threatens to shut down your work. Talk with your insurance agent to find a policy that meets your commercial property's needs.

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