A disaster such as a fire or storm can happen to any business at any time. If it occurs, a business may be forced to close temporarily while repairs are made to the building. This can result in lost revenue and profits. Other costs might still need to be paid while repairs are being made.
If you own a business, you need to have insurance to protect you in the event of a disaster. However, many business owners overlook other costs associated with recovering from a catastrophe. Business interruption insurance can help cover many of these costs. Business interruption insurance is not sold separately, but it is instead included with a property insurance policy or package.
Business interruption insurance can pay your company the revenue you lose while you are unable to work in your normal location. If you are forced to vacate your location because of an event that is covered by your property insurance policy, the business interruption coverage will pay for the revenue your business would have earned. This is determined by evaluating your financial records. It will also pay for operating expenses, such as electricity, that you will continue to have to pay even though you are unable to use the building.
When shopping for a business interruption policy, make sure you get enough coverage. It may be weeks or even months before you are able to return to your regular location and get your business up and running again. Be prepared for a relatively long period of time that you will be unable to operate your business as usual to make sure you have enough money to cover all of your expenses.
The cost of business interruption coverage varies depending on the risk to the company. A business that has a high risk of catching fire, such as a restaurant, will have to pay higher premiums than a low-risk business. Some businesses are also able to operate out of an alternate location more easily than others.
You might also want to get extra expense coverage. That will reimburse you for reasonable costs you pay above normal operating expenses so that your business can continue to operate while it is being repaired. The insurance company is usually willing to pay the extra costs if they can reduce the overall cost of the interruption.
Business interruption insurance can cover many of the costs you will face if your business is damaged by a fire, storm, or vandalism. It can help your company survive a disaster and get back up and running as fast as possible. If you need a quote for business interruption insurance, contact Petruzelo Insurance today.
For more information on small business insurance in Connecticut, call: 1-866-479-3327
Customer satisfaction is the key to an independent agent's livelihood. So, serving policyholders is an independent agent's most important concern. We offer one-stop shopping for a full range of products - home, renters, auto, business, life and health.
We are committed to always "be there when you need us" to answer questions, modify coverage, or provide claim assistance. Call for a quote and you'll quickly experience the "Petruzelo Difference:" sincerely caring and personal service that really does make a difference.