Business Interruption Coverage and Its Importance With Commercial Insurance

It is essential for every business to stay open, allowing customers to flow in to buy products and services.  What happens, though, when you are unable to operate your business as expected?  It could be due to a severe weather event, major construction, or some other reason that could force your business to close.  Serving the Mishawaka, IN area, business interruption insurance is often a topic among Kevin Dennis Insurance Agency clients.

Understanding the Coverage

Business interruption insurance is also known as business income insurance.  It is a type of insurance that will cover you for the loss of income to your business following a significant event.

The coverage will protect you if you are losing income as a result of forced, involuntary closure.  It could also help you beyond just closing if you have to rebuild the business following a disaster.

Common Coverages

The coverages typically included with business interruption insurance are net income you would have earned, as well as coverage for regular operating expenses, cost to minimize the loss, as well as extra expenses as you restore the business.

Loss of Income is Crucial

Small businesses need income to continue to flow in the day-to-day.  Once the income stops coming in, it can be challenging to keep the lights on.  The value of paying an added premium for business interruption coverage is that if closure happens, the income will be replaced.  The cash flow will continue so that the business doesn’t have to miss a beat.

Business interruption insurance should be a consideration for all businesses.  If your company is forced to close its doors, the coverage will help to replace the income you have lost as a result.  Serving the Mishawaka, IN area, the Kevin Dennis Insurance Agency can help educate on business interruption insurance and its value.