How Can Business Interruption Insurance Save Money for My Company? 

Throughout your business’s operations, accidents, errors and other incidents, many of which may be out of your control, could bring normal functions to a screeching halt. Without the right business interruption insurance coverage, you may be left without a means to manage the financial repercussions of these situations.

Fortunately, by working with the team at Martinez Insurance Services, you can secure and retain appropriate business interruption insurance.

What is Business Interruption Insurance?

This type of coverage, also known as business income insurance, can play a necessary role in helping your organization manage the aftermath of many common incidents.

Business interruption insurance may be available as an endorsement for commercial property insurance policies or a standalone form of coverage. Regardless of how you secure it, this form of insurance should be a top priority.

What Can Business Income Insurance Cover?

As its name suggests, this type of insurance can assist with monetary losses following covered incidents. Although exact coverage details may vary, fires, explosions, fallen objects (e.g., trees and tree limbs) and some natural disasters are typically included in your policy.

In response to covered incidents, your insurance can submit a claim to recoup losses and expenses, such as the following:

• Reduced revenue—Your insurance may help you recoup income you would have earned if not for the incident.

• Rent—If you rent your premises, your policy can help you keep up with your payments even if you can’t operate or occupy the workplace.

• Payroll—Your policy can help you continue to pay your employees during a temporary closure.

• Loan payments—If you have a mortgage or other outstanding loans, your insurance can assist with these ongoing expenses.

• Temporary relocation—Should you temporarily relocate your business while its premises are rehabilitated, your policy may assist with moving costs and the rent for your new location.

Given the potentially exorbitant out-of-pocket sums that might accrue from the aforementioned losses and expenses, the importance of business interruption insurance should be clear.

The right policy can make the difference between your company successfully recovering from an incident or potentially facing insolvency.

Get the Right Coverage

Contact Martinez Insurance Services to learn more about business interruption insurance or to get a free quote.

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.