Interruption Insurance for Your Business

4/21/2020 (Permalink)

Business interruption insurance can help your company financially

A fire at your Rio Verde, AZ, business can cause major damage and disrupt your operations for some time. Fortunately, interruption insurance, also called income insurance, can help get you through by covering many of your normal expenses and lost income.

What is Covered?

Due to lost revenue, some businesses permanently shut down after a fire. Income insurance will cover many of the necessary costs of running the business, such as:

• Payroll
  
• Taxes
  
• Fixed expenses, such as loan payments
  
• Temporary relocation expenses
  
  

Make sure to discuss your policy with your insurance agent. Know exactly what is and is not covered, and make sure your coverage limits are high enough.

What are the Insured's Responsibilities?
The insurance company is obligated to fulfill their part of their interruption insurance contract, i.e., covering your operating expenses and lost income after a fire or other disaster. However, there are often provisions in the contract explaining the responsibilities of the policyholder. It is best to speak with your insurance agent regarding such provisions. The insured is generally responsible for preventing further damage to the property during the period of business interruption. This means tarping over or boarding up damaged areas of the structure to keep out wildlife and vandals. In some cases, it may be necessary to install a security fence to deter unwanted visitors. It is also the business owner's responsibility to get the fire restoration process started quickly. Water left over from the extinguishing efforts can foster mold growth in as few as 24 hours. If the water is left for too long, the insurance company may not cover the mold damage. The restoration process should also be finished within a reasonable amount of time. Talk to your agent to discuss a time frame if one is not listed in the policy. If you do not meet this deadline, you might not get your business reopened before the coverage expires.
Although interruption insurance can help your company financially, a certified restoration service can take care of your fire-damaged property. They can help you get your business back to normal quickly and safely.