Business Interruption Insurance Can Save Your Business

6/18/2018 (Permalink)

Disasters such as fire or flooding can have a devastating effect on a business.

Many business owners are unaware that a standard insurance property policy limits disaster coverage. It will often cover some business losses and physical damage after a disaster such as fire or flooding, but the standard business policy does not typically cover business disruption losses in Billings, MT.

Coverage

When a damaging event occurs that closes your business, revenue can plummet. Although bills may still arrive and need to be paid, lack of income can often make it difficult to pay your creditors. Fortunately, business interruption insurance can often cover the following:

• Fixed revenue costs during a disaster
• Lost revenue during the business closure
• Temporary operating expenses

That means when your business is hit with an insured event such as large water damage from a broken pipe, and the company needs to close for a month, the business interruption insurance may begin coverage. The insurance may include new store front rent, utilities, and even advertising concerning the temporary location.

Calculation

Although interruption insurance payments can be difficult to figure out, it often involves your exacting business records and past tax returns. The insurance company may investigate profit and loss from previous years, business income and expenses up to the date of the disaster, and projected sales and expenses for the rest of the year. Using available information, the adjuster can often swiftly calculate the lost revenue and business expenditures.

Closure

When a disaster such as flooding occurs, immediately calling in a water repair team can mitigate some of the damages your business may incur. However, it may take much longer than expected to complete building restoration. For this reason, extra expense insurance may be a good way to protect the business during any unexpected closure. The policy can reimburse the company for an amount more than actual operating costs.

Protection

Disasters such as fire or flooding can have a devastating effect on business revenue when the company must close its doors for more than a few days. Business interruption insurance can help you keep company doors open, even if it is from a different location. For more information, visit http://www.SERVPRObillings.com/.