Every once in a while, your business might need to close for an extended amount of time. During that time, you will still have expenses. You will need to pay for utilities, meet vendor demands, and keep employees covered while they cannot work.

Your business insurance policy can often lend you a helping hand in this situation. Specifically, business interruption insurance may provide the financial support you need to ensure your expenses remain intact while your business is not operational.

When Does Business Interruption Insurance Apply?

Business Interruption Insurance is not applicable all the time. It generally only helps cover long-term financial concerns related to your company’s covered risks.

This coverage becomes accessible when an accident or unpreventable occurrence temporarily shutters your company. Some common instances include:

• Fires that lead to the need for substantial renovations and repairs.
• Flooding caused by broken pipes.
• Structural repair or the replacement of equipment lost in theft or vandalism.

When Is Business Interruption Insurance Available?

There is often a waiting period for Business Interruption Insurance to become available. This waiting period could be as little as 48 hours or more than a week. However, once the policy is available, you can cover many of your expenses. This may include expenses related to:

• Paying employees
• Covering vendor costs
• Paying mortgages or other loans
• Temporarily relocating your business
• Covering inventory replacement or management

How Much Money Will My Business Receive?

Remember, the amount of money you receive from insurance during a business interruption can vary. Most of the time, the policy will only pay out a set amount of money. Your insurer generally determines that sum based on the income your company would have received during that timeframe if it was open. This estimate is most often based on revenue from the previous year or from the average revenue from the weeks leading up to the incident.

Will your business need to close due to a covered incident? If you have Business Interruption Insurance, you might not lose out on the revenue you need. Work with your insurance agent to ensure you get the right policy to meet your specific needs.

John L Sprague can help you get the business insurance you need to protect closures. Call us at 301-934-6010 for a fast, free insurance quote.