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Business Interruption Insurance Lost Income Coverage After a major disaster such as a fire, you may have to close your business for reconstruction. However, you will likely lose income during this transition time. Business interruption insurance coverage can compensate you for the loss of profits that you normally would have made during this time; the policy can also cover expenses such as electricity that continue while your business is closed. Long-term Coverage As you search for business interruption insurance, you should remember to look for a policy that covers more than just a few days. After a major disaster, it may take weeks or even months for your business to reopen. Most coverages do not start until your business has been closed for at least 48 hours. Cost of Business Interruption Insurance The cost of business interruption insurance coverage is directly dependant upon the likelihood that your business will be involved in a fire or other disaster. For example, a restaurant is more likely to have a fire than some other businesses, and if a business is sitting on a fault line, the likelihood of destruction by an earthquake is higher. Additionally, businesses that can easily relocate until the original location is restored will pay lower costs for this type of insurance coverage. Extra Expenses Covered Additionally, the business interruption insurance policy can cover extra expenses that your business incurs during a restoration period. Moving to a new location can cause a lot of unexpected extra costs, and this coverage will pay for a reasonable amount of these costs. Sometimes this is sold separately from business interruption policy and could in itself pay for the extra expenses incurred if your business is struck by a disaster. info@businessinsurancefinders.com |