What is Business Interruption Insurance and Should You Have It?

10/5/2022 (Permalink)

Business interruption insurance (BI) is a type of insurance that covers your business when it’s unable to operate due to a covered event.

What is Business Interruption Insurance and Should You Have It?

It doesn't matter how large or small your business is, you always want to be prepared for the worst-case scenario when it comes to a fire in your business. When it comes to fire damage in your business, there's no telling what kind of financial impact it will have on your bottom line. Before fire even breaks out, you should consider business interruption insurance. 

Business Interruption Insurance Coverage

Business interruption insurance (BI) is a type of insurance that covers your business when it’s unable to operate due to a covered event. Business interruption coverage typically only applies after the initial phase of damage repair and may include:

• Losses that occur during the time period when the insured is not able to conduct business activities at their normal location because of fire, vandalism, or another insured peril that causes physical damage to premises;
• Losses resulting from loss of use, rental income, lost profits, and additional expenses incurred as a result of relocation for an extended period; and
• Costs associated with maintaining employees’ jobs during the temporary closure.

You Need Business Interruption Insurance

As a business owner, you are probably aware that your company has certain risks. You need to take precautions and make sure that you have coverage in case something goes wrong. Business interruption insurance is a policy that covers revenue loss due to fire, natural disasters, and other events that can damage your property or shut down operations for an extended period of time.

If you have fire damage on your property and your business location has been rendered unusable, this type of coverage will help pay expenses like temporary space rental until repairs are made at your original location or lost revenue if it becomes necessary to close permanently until repairs are made.

Fire damage is a terrible thing for any business owner. It can be hard to keep things going when all of your equipment and products have been destroyed. That’s why it’s important that you have business interruption insurance. With this kind of insurance, you can pay someone else to take care of your business while you recover from the loss caused by fire damage or other disasters. Whether it’s rebuilding or just getting back on track, having coverage will help ease some of the stress associated with these situations so that you can focus on what really matters: rebuilding your livelihood!

After Disaster, Call SERVPRO of Tri Cities West/Franklin County

Call SERVPRO of Tri Cities West/Franklin County for fire, water, or storm damage restoration in your business. We are the best choice for restoration work in your area, and we work with all major insurance carriers.

SERVPRO has been helping families and businesses handle the effects of fire, water, and storm damage for years, so you can trust that we'll be able to help you handle your claim from start to finish. Our experts have extensive experience working with a variety of claims, so no matter what kind of loss you've experienced, we will be able to handle it quickly and efficiently.

As soon as we get your call, we'll dispatch a team with specialized equipment and training to begin working on cleaning up your fire damage problems immediately. The sooner this happens after your incident, the less likely that there will be further damage or complications down the line (which could lead to additional costs).