Understanding Business Interruption Insurance

5/4/2021 (Permalink)

Fire damage in Terrace Park, OH

A fire or other devastating weather-related has the potential to make a business in Terrace Park, OH, go under. For businesses with physical locations and assets, adding business interruption insurance can be a lifesaver. Along with helping to cover restoration costs by a fire cleaning and restoration professional, it provides financial relief needed to keep your business going even during unexpected downtime.

What Does It Cover?

If a business fire happens, the damage goes far beyond the physical environment. If you are forced to temporarily shut the doors, you still have bills to pay and other expenses that may not be able to be met with money not flowing in. A business interruption policy typical provides the following:

• Reimbursement for revenue lost during shutdown, which usually is provided for up to a year.
  
• Payroll costs to maintain your workforce.
  
• Costs associated with rent or lease payments.
  
• Funds to continue paying loans to avoid missed payments.
  
• If temporarily relocating, it will aid with moving costs.
  
• Money will be available for any tax obligations.
  
  

Filing a Claim
There are certain requirements that must be met to file a claim:

• Income loss forces a suspension of business operations.
  
• That loss is directly related to physical damages.
  
• An income limit is required to be set.
  
  

There is also a period of restoration, which typically includes a 72-hour waiting period. That means income lost during those days will not be covered. This period ends once all repairs or completed or if the business moves to a new location. It’s also important to remember that there is a coverage limit, which will be dependent on how much coverage you get. If the damage is severe, there may be some out-of-pocket expenses.
A business has a lot of components that make it thrive. Adding business interruption provides peace of mind that even a massive physical loss can be weathered.