Consider Business Interruption Insurance

With the recent tornadoes in the Oklahoma City area it seems like a good time to remind you that Business Interruption Insurance can be a vital part of your insurance package.

You need to be ready when a disaster strikes your business. It could be a storm, fire or other unforeseen event you need to have coverage that does more than just replace your inventory and property.  You need to protect your real cash flow.

If your business suffers a property loss it could cause the business to slow or close down while repairs are made. This may mean a complete or partial revenue loss depending on the time frame and the damage. From the time the loss occurs until your business is running again, insurance can replace your lost profits, and provide a source of money to pay your necessary continuing expenses, like rent, payroll, taxes, etc.

Business interruption insurance covers the loss of income that a business suffers after a disaster while its facility is either closed because of the disaster or in the process of being rebuilt after it. Your property insurance policy only covers the physical damage to the business, while the additional coverage allotted by the business interruption policy covers the cash-flow that would have been earned. This extra policy provision is applicable to all types of businesses, as it is designed to put a business in the same financial position it would have been in if no damage had occurred.

This type of coverage is not sold as a stand-alone policy, but can be added on to the business' property insurance policy or comprehensive package policy. Since business interruption is included as part of the business' primary policy, it only pays out if the cause of the loss is covered by the overarching policy.

The following are typically covered under a business interruption insurance policy:

Fixed Costs: Operating expenses and other costs still being incurred by the property (based on historical costs);

Temporary Location: Special policies may cover the extra expenses for moving to, and operating from, a temporary location;

Profits: Profits that would have been earned (based on prior months' financial statements);

Extra Expenses: Reimbursement for reasonable expenses (beyond the fixed costs) that allow the business to continue operation while the property is being repaired.

When considering your needs for insurance products for your home or business remember contacting Bennett Insurance Group is the right move.  Give us a call at 623-979-4140

Presented By:
Jim Bennett
Bennett Insurance Group
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com