FRIDAY, AUGUST 11, 2023
As a business, your clients and customers rely on you to provide timely and dependable services. However, there may be times when various incidents adversely impact your normal operations. These situations can vary in severity and length but typically include at least some financial ramifications. When your business’s functions are interrupted, it can have short- and long-term effects on its profits and mission. Fortunately, adequate loss control measures, including a business interruption insurance policy, can curb your losses.
What Is Business Interruption Insurance?
As its name suggests, business interruption insurance can provide financial security in response to incidents that disrupt or delay your company’s functions. This type of coverage, also known as business income insurance, may help your organization absorb the financial implications of these difficult times, providing the resources and assistance needed to keep you afloat. 
What Does Business Interruption Insurance Cover?
Your organization’s business interruption insurance policy may help pay for many expenses and losses arising from incidents. Although the specific capabilities and limitations of your insurance may vary, the following may typically be covered:
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Lost or reduced revenue—This component of your business interruption policy may help your company recoup income it would have made if not for an incident.
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Fixed costs—This coverage may help pay ongoing costs, including rent and mortgage payments for your premises and bills, such as for taxes and loans.
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Employee wages—If a covered incident interrupts your business, this part of your policy can help ensure your workers do not go unpaid.
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Temporary relocation—This coverage may help pay for moving costs and additional rent if you are forced to relocate your company.
How Long Can Business Interruption Insurance Provide Aid?
Business interruption insurance policies typically include a restoration period. This clause establishes a length of time your organization can receive financial assistance in response to covered incidents. Most policies also include a waiting period before your insurance will begin to provide aid. Although the details and lengths of these periods may vary, waiting periods often last between 48 and 72 hours, while restoration periods typically span 12 months. In many cases, your policy may continue to pay out even if it expires during the restoration period.
How Much Does Business Interruption Insurance Cost?
The cost of adequate business interruption insurance may vary significantly depending on your organization’s unique circumstances. Before being able to provide you with an accurate quote for adequate coverage, insurers may consider the following factors:
We’re Here to Help
At Casey Insurance Group, our agents have experience serving clients in all 50 states. We will work with you to assess your risks and exposures and address them with optimal coverage solutions. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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