What Is Business Interruption Insurance?

6/16/2018 (Permalink)

It can be overwhelming to imagine all of the steps to take if your Oklahoma City business has to unexpectedly shut down. Even if it’s only for a short period of time, you can lose a significant profit if you are forced to close after a natural disaster. Business interruption insurance often gives you peace of mind that temporarily closing your company’s doors doesn’t mean a complete loss of business. This addition to your property insurance can provide you with income you would have earned had you remained open while you rebuild. Utilizing this coverage can allow you to focus on quickly and thoroughly restoring your closed business to its full working capability.

Business Interruption Insurance Can Benefit You

Adding interruption coverage to your Oklahoma City, OK company’s plan helps to ensure that you’re not losing profits while you’re in the process of rebuilding your establishment. Your business might benefit from multiple aspects of this protection:

• This insurance generally covers the loss of income during a restoration period to your company, so you are still bringing in income. This amount is usually determined by historical data on the typical revenue and expenses of a business.
• Utility operating expenses, such as electricity that continues to be billed, can also be covered under this policy.
• Extra expenses insurance is also generally available. This often includes costs related to relocating a business, such as rent on a temporary location, while you rebuild.

Considerations

The price of this policy addition is usually related to the type and location of a business. Coverage can look different for a small retail shop vs. a large restaurant. Specifics of your building, such as sprinkler systems and likelihood of a fire, can also affect your policy coverage. Additionally, the amount of coverage can vary based on the length of time it takes to restore your business. The needs of a business that rebuilds in just a few weeks vary greatly from a larger renovation that takes several months.

Scrutinize your business’s needs and plan ahead for the worst-case scenario. By doing so, you can help your company rebuild and stay afloat even in unstable times. Visit http://www.SERVPROofsouthoklahomacity.com for more information on storm damage.