If your business has suffered damage due to a natural disaster or appliance malfunction, you may be surprised to find out how long the necessary repairs will take. Many business owners worry that staying closed for an extended time while repairs are made will be devastating to their bottom line and cause them to sustain heavy financial losses. Luckily, there is a type of insurance claim that allows business owners to recoup the income lost while the business is being restored. Read on to learn more about business interruption insurance and how it can help your business in a time of need.
Business interruption insurance provides coverage for businesses that suffer a loss of income after the business has suffered damage. Damage to a commercial property can take some time to repair and during this time, the business owner is not typically able to operate the business. For a small business that operates on slim margins, being closed while repairs are made means losing income, which can be devastating. Business interruption insurance covers this loss of income to help the business survive until repairs are completed and normal business activities can resume.
A typical business interruption insurance policy covers the amount of income that would reasonably have been earned, minus operating expenses, for the period of time that the business is being restored. Some policies give the business owner an extra thirty days after repairs are made to get the business up and running again. If more than thirty days is needed, the business owner can apply for a longer period, but there may be more premiums associated with this extended coverage.
A business interruption claim can only be made if the damage that caused the business to close was a covered peril. This typically means, but is not limited to, one of these covered perils:
The business must also be closed due to repair or restoration activity in order to have periods of lost income covered. Closures for longer than this timeframe are typically not covered unless the business owner has purchased extra coverage.
Business interruption insurance is a type of coverage that can vary greatly based on the options chosen and the kind of damage suffered. To ensure that you get the most possible coverage from your claim, get expert advice before your paperwork is filed. A public adjuster, like those at Five Star Claims Adjusting, can help you file a claim and get it approved. Contact us to learn more about how we can help.