Business Interruption Insurance

Business interruption insurance is designed to save and assist a business when times of catastrophe happen. For example say you own a business in California. Your office is located on the beach to the point where you have a great view about 300 feet from the ocean tide. Your office for the most part is used for business meetings and much of your income comes from individuals coming in and out of your office. Now, say tomorrow a tsunami wipes out the office building and your office can no longer be used for conferences, meetings, and appointments. At this point, if your business is still salvageable at all the business interruption insurance would begin. The business interruption insurance would pay for all of the temporary costs that you would have undertaken if you wouldn’t have had interruption insurance. Say you have to rent out a building and purchase new supplies, computers, your utilities bills, you name it. If it is an inconvenience until you get back into your personal office again, interruption insurance will cover it. The great thing about interruption insurance is that it is not extremely pricey like a lot of insurance policies, so it is always good to have protections, so you are not left soaking up a catastrophe.

Fast Facts

Some fast facts about business interruption insurance:

  • Profits you would have earned, based on financial history, are covered if your place of business gets destroyed.
  • Operating expenses that arise if your main business activities are delayed and not creating revenue.
  • Expenses can be covered if you have to operate your business out of a temporary workplace
  • Policy price is based on risk of where your place of business in located.
  • Interruption insurance usually takes a few days to kick in

Business interruption insurance is vital to a business, if you don’t have it and something bad happens to your company that could very well be the end of all your hard work.

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