Business Interruption Insurance Protects Against Lost Profits
Released
on: November 12, 2009, 11:05 am
Author:
Rafael Onak
Industry: Small Business
The business industry these days is in need of some help.
Businesses left and right are being forced into bankruptcy, regardless
of whether they’re neighborhood staples or new up-and-comers. On top of
having to worry about keeping their profits in the green, business
owners also have to adequately protect their establishments against
catastrophic disasters such as fires, tornados, floods, etc. A recently
published article on InsuranceAgents.com reveals the importance of
business owners purchasing a quality business interruption insurance
policy.
The article, titled Business Interruption Insurance: When Disaster Strikes, emphasizes that a quality
business interruption insurance policy can help prevent a business from stopping or
slowing down production should a catastrophe strike. Most standard policies include
compensation for profits the company would have earned had the property not been
affected by a catastrophe. For example, if a business’s building burns down to the
ground and the business is forced to relocate, all of the profits it loses are
covered.
Any expenses the company pays for are also covered in a standard policy,
particularly electricity and heat, which may occur even if a business’s operations
are put on a temporary hiatus. There are some disclaimers, however, to a business
interruption insurance policy.
“Keep in mind that a business interruption insurance policy is not your standard
policy,” the article describes. “It is not sold by itself, but instead is most
commonly added onto a property insurance policy or included in a separate package.
More often than not, it takes longer to renovate a building than initially
anticipated.”
So how affordable is quality coverage? The price of a business interruption
insurance policy depends on a variety of factors, including the location of the
establishment, premise of the business and how easily it adapts to operating at a
temporary location. Business owners looking to obtain a business interruption
insurance policy for their business should contact a business insurance agent today.
Go to InsuranceAgents.com for more information and to receive insurance
quotes from up to five local agents.
Contact Details: Tom Lustina
InsuranceAgents.com
435 North LaSalle
Chicago, IL
60610
614 286 0193
2012
