Interruption Protection with Small Business Insurance

If there’s a problem at your physical business location, a certain type of small business insurance called “Business Interruption Insurance” may help protect you against the possibility of lost income. Business interruption insurance can help mitigate losses which are not typically covered by standard property insurance policies. Including this extra coverage can really make a positive impact in the event of the unexpected, and may mean the difference between the life and death of your business.

Extra Protection
With business interruption insurance, your business will be protected if there is a loss of income. This can occur when it’s become impossible to do business at your existing location. Examples of why this could happen include damages due to storms or other natural disasters, break-ins, or any other circumstances which require you to do business from a different location temporarily. This can really ease the financial burden of any business which is forced to cover expenses for two different physical locations (the original and the temporary) for the short-term.

Covering Costs
Interruption coverage will often take care of any fixed expenses as well. These are determined by examining your business records to find typical costs of those expenses, such as utilities and rent. The amount of coverage granted by the benefits for income loss is also determined by previous financial records. Extra expenses, such as those incurred by simultaneously operating from a new location while maintaining the old location, may also be covered by a business interruption policy.

Protecting Your Investment
Purchasing business interruption insurance is likely one of the most valuable coverages you can maintain for your business. Unfortunately, it’s also one of the types of business insurance policies which is very typically overlooked by business owners. It’s far too easy to forget that a physical property is needed in order to keep running the business, and take it for granted. Additionally, many business owners may incorrectly assume that property insurance covers loss of income. In reality, a property policy typically only covers physical losses such as the building itself and any inventory. For more comprehensive protection, adding business interruption insurance is a must for anyone who is serious about the longevity of their organization.

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