With business interruption insurance, your company can survive uncertain times without falling behind on bills or losing employees. If you already have commercial insurance, we highly recommend beefing it up with BI insurance. At Grand Mutual Insurance Services, we can provide all your commercial insurance needs, tailoring your coverage to perils in your industry and location. Business interruption insurance is important because it gives you the cash to pay your expenses and maintain an income even if you have to close your doors temporarily. Find out how it works.
How Business Interruption Insurance Works
Commercial property insurance kicks in to cover physical damage to your business. However, how can you recover your lost profit and pay the everyday bills that continue while you’re undergoing repairs? Fortunately, business insurance reimburses lost sales and gives you the cash needed to pay your employees, taxes, loans, and lease, among other covered costs. You may even receive relocation costs under certain circumstances.
You should invest in business interruption insurance if you want to get paid in the event of a natural disaster and other covered events. You’ll need an intact property or casualty policy to qualify for BI coverage.
Protect Your Business Against Unforeseen Disruptions
To maintain operations during unforeseen disruptions, talk to one of the exceptional agents at Grand Mutual Insurance Services. We can help you tailor your policy to meet the risks and perils that are likely to occur. Commercial property insurance does cover the physical damage to your business property. However, it won’t reimburse you for lost income or pay your fixed costs while you rebuild. BI may cover relocation costs or pay your mortgage or lease while you remain closed. It typically handles costs associated with closure due to floods, earthquakes, and other natural disasters.
Note that there are exclusions to what business interruption insurance covers. For example, it won’t cover disruption due to pandemics or epidemics. However, there is a separate coverage type that will handle these risks.
What About Interruptions Due to Civil Authority?
What happens if a government agency requires your business to shut down temporarily? If federal, local, or state government agencies evacuate the neighborhood or prohibit you from doing business, you might receive BI reimbursement. However, that depends on how your policy is written.
Triggers for civil authority closures must meet certain standards, such as the following:
- Access to your business is prohibited.
- There is physical damage near your commercial property.
- The cause of the damage meets the requirements of your insurance.
It’s important to understand the circumstances under which you’ll be reimbursed. For example, BI policies typically cover incidents within a certain distance of your business.
Benefits of Business Interruption Insurance
With BI, you can enjoy peace of mind knowing that you can pay your workers and bills if you have to close your business for a while. This coverage provides income so that you can keep your business going. You need a financial buffer to ease the loss of revenue. At the same time, you may need help opening your doors in a temporary location.
Having BI gives you an advantage over competitors impacted by the same covered event. The faster you open the doors, the better your chances of turning tragedy into a boost in traffic and profits.
Contact a Professional Commercial Insurance Company
It’s important to protect your business in any way possible. That may include adding business interruption coverage to your business insurance bundle. Contact Grand Mutual Insurance Services to get a free quote or to discuss your business interruption insurance needs.
Have questions? Our team at GMIS is here to help.
At Grand Mutual Insurance Services, we are committed to providing you with the most up to date information on the insurance market. Reach out to GMIS today for personalized guidance, and maximize advantages for growth and success:
info@grandmutual.com
888.732.5994