Skip to main content

Business Interruption Insurance

Owning a business is rewarding but is a great responsibility. As an owner of a business, you are responsible for everything that concerns the business. This can include physical damages, repairs and remodeling after a disaster has taken place. All of these things are great, but what happens when the operation of your business is out of commission for a while because of these factors? This is a situation where business interruption insurance can help.

What Is Business Interruption Insurance?

Business interruption insurance is a type of insurance that is offered by many insurance companies, including Ramey King Insurance, for businesses that experience a loss due to disaster. It covers the revenue a business loses due to the business closing temporarily for repairs and other maintenance issues after a disaster. This form of insurance can keep a business afloat until they are able to make a full recovery from the disaster and get back on track. Many business owners are under the impression they only need insurance coverage for the physical damage a business may sustain, but when it comes to recovering after a disaster, business interruption insurance is the best way to keep the business from going under and permanently closing its doors.

What Does Business Interruption Insurance Cover?

The coverage for business interruption insurance is limited. This type of coverage is often misunderstood. Business owners will not receive a blank check to cover their rebuilding and maintenance costs. Business interruption coverage is restricted in two primary ways.

1) Suspension of Operations- Business that experience a loss of income due to suspensions, cessations and slow downs due to a disaster are covered under business interruption insurance.

2) Business Conditions (Unfavorable)- Income that is lost due to poor business conditions are not covered under business interruption insurance.

Business interruption insurance is great to have in addition to other coverage you may have, including physical damage coverage. Make sure you have enough insurance to use as a safety net in case a disaster strikes your business. This insurance safety net will ensure you can rebuild your business instead of closing your business for good or starting over from scratch.