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Posted on SEP 24, 2019

Are You Covered In Case of a Business Interruption?

Don’t let the loss of your facility stop you from keeping you open for business.

If a large loss causes your facility to be temporarily unusable, what would you do next? Ideally, you would move to a temporary location while your permanent place of business is being repaired. Yet, traditional Property Insurance does not cover this move or a loss of income when a business must temporarily close. With Business Interruption Insurance, also referred to as Business Income coverage, this setback can be minimized by making sure you have adequate coverage in place.


A business interruption policy typically covers:

  • Compensation for lost income if you have to vacate your premises as a result of disasterÔÇÉrelated damage covered under a Property Insurance policy
  • Compensation for partial lost income if you are operated at a limited capacity due to a covered loss
  • Profits that would have been earned based on previous financial records, had the disaster not occurred
  • Operating expenses, such as utilities, that must be paid even though business temporarily ceased
  • Expenses of operating in a temporary location while repairs to the permanent location are completed
  • Payroll for professionals, officers, executives, department managers and employees under contract, all of which covered as a necessary, expense. Ordinary payroll can be included or excluded depending on your needs
  • Optional coverages are available for lost income due to losses outside your facility, such as a loss at a key supplier, a loss at a neighboring facility blocking access to your location, or an offsite utility interruption or power or water

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