How Business Interruption Insurance Helps After a Fire

5/12/2020 (Permalink)

Business interruption insurance can help cover your costs during the restoration period

A fire to your O'Fallon, MO, business can cause major damage and disrupt your operations for a significant period of time. Fortunately, business interruption insurance can help cover your costs during the restoration period.

What Does Interruption Insurance Cover?

Every policy is unique, but interruption insurance usually covers regular operating expenses incurred as well as profits lost while your business is not fully operational. Some of the expenses covered include the following:

• Wages
• Taxes

Fixed expenses, such as operating costs and loan payments
Temporary relocation
Other miscellaneous expenses the business incurs in order to remain operational

Many companies close permanently after a business fire due to lost income. The funds received from an interruption policy can help your business stay afloat without losing employees, falling behind on taxes or defaulting on loans. Make sure you maintain adequate records showing income, expenses, and profits for your business and keep these in a safe location, such as cloud storage so that you have access to them when filing a claim. Discuss the details of the policy with your insurance agent to make sure you have enough coverage to see you through a disaster.

How Long Does Coverage Last?
As the name implies, business interruption insurance covers the period of interruption due to a fire or other unforeseen event. Many insurance companies define this period as extending from the day the loss occurred, i.e., the date of the fire, to the day the business has been fully restored and is back to normal operations. This includes the time needed for fire cleaning, purchasing new equipment, etc.
If your company suffers a fire, business interruption insurance can help pay for your expenses while your property is being restored. Even so, it is important to get your business back in its regular building and operating at full capacity as soon as possible. An experienced restoration service can help with this process, giving you more time to focus on taking care of your employees and customers.