Most companies are unable to survive an interruption after a disastrous situation arises. While many businesses have insurance that covers physical damage to their building and property, some lack business interruption insurance, which covers lost income and continuing expenses if the business were to close or require repairs because of a disaster. This type of coverage helps to pay normal expenses along with any profit that would have been earned during the interruption. If you have an interruption, the most valuable part of this coverage would be that you would be able to continue to pay your expenses at ease.
Although each policy will differ depending upon the insurance company and the options chosen, many policies will cover a business’s actual losses for up to 12 months while the property is being restored or rebuilt. Some policies will offer to cover expenses for up to 18-24 months. Others will cover up to a certain dollar limit.
Business income coverage is added to a company’s property insurance program because the coverage is triggered whenever a direct physical loss occurs. In addition, extra expense coverage can be purchased. This valuable coverage pays any additional expenses that are incurred as a result of trying to get your business back up and running as soon as possible after a loss.
It is never easy to prepare yourself and your business for the worst. However, by adding or renewing this coverage, you are putting yourself in a great position should a disastrous situation arise.
If you have any questions or concerns please call The Uhl Agency at (937) 434-9090.