If a catastrophe, such as a fire, causes your business premises
to be temporarily unusable, your business may have to relocate
or even close down for while.Business interruption insurance
is designed to help in these situations.
Business Interruption Insurance Covers:
Profits you would have earned, based on your financial records,
had the disaster not occurred.
Operating expenses, such as electricity, that may occur even
if the main business activities are temporarily stalled.
Some policies cover expenses incurred from operating out of
a temporary location while the original premises are being repaired.
How to Purchase Business Interruption Insurance:
Business interruption insurance is not sold as a policy by itself. It may
be added onto a property insurance policy or included in a package
policy, such as a business owner's policy (BOP). Check with agents
for different options.
Make sure your policy limits cover a sufficient amount of time to rebuild your Business. It can take more time than anticipated after a major disaster to get your business functioning again.Generally, there is a 48-hour waiting period before the coverage kicks in.
The policy price is related to the risk of a fire or other disaster damaging
your business premises. Factors that affect this are location, the nature
of your business, and how easily your business could operate out
of a temporary location.
What is Extra Expense?
Extra expense insurance reimburses your business for reasonable
expenses beyond normal operating expenses that keep the business
from shutting down during a post-disaster restoration period. Usually,
extra expenses will be paid if they help decrease business interruption
costs. Some companies may find extra expense coverage sufficient
without business interruption coverage.
Hayes Insurance Agency 3550 San Pablo Dam Rd. Ste. C El Sobrante, CA 94803 Toll Free Ph: (800) 869.8643 Local Ph: (510) 222.8643 Fax: (510) 222.6162 License #0658980