Why You Should Consider Adding Business Interruption Insurance To Your Commercial Insurance Policy

If you recently opened a small coffee shop and bakery and are trying to make sure you are fully covered with insurance, you may want to look into adding business interruption coverage to your commercial policy. Commercial insurance is a necessity for any type of business, yet it can be hard to know exactly what types of coverage you really need. Here are several things you should understand about business interruption insurance.

What Is It?

While there are many types of commercial insurance coverage you can purchase, you probably do not need them all; however, getting business interruption insurance is a good idea for many types of businesses.

Business interruption insurance is basically designed to reimburse you for the profits you will lose if something major causes your business to close down. This could be damage caused by a fire, tornado, or any other type of major disaster. It could also include coverage for extreme problems your business might run into, such as the discovery of mold or asbestos in your building.

What Exactly Does It Cover?

Every business interruption policy might be slightly different, but in most cases it will cover the following things:

  • Bills you must keep paying while your business is being repaired – If a fire destroys part of your business, you will still have bills to pay while the repairs are being completed. This can include electricity, insurance, and other utilities.
  • Loss of profits – The main thing to understand is that a business interruption policy will pay you for the profits you lose from not being able to operate. If you rely on the profits from your business to pay your weekly paycheck, you should consider getting this insurance.
  • Extra expenses you may incur – In addition, this type of policy may also cover other expenses you may incur after a disaster happens to your business. This could include fees for a storage shed that you must use to store your business assets in while the repairs are being completed.

If something happens to your business that causes you to have to stop operations, would you have enough money to get by without the income you normally earn from the business? If not, you should consider adding business interruption coverage to your existing commercial insurance policy. The amount you will have to pay for this will depend on the type of business you own, the assets you have, its profits, and the amount of coverage you would like. To learn more, contact a commercial insurance company like Paris V Mastroddi, Inc today.