Helping Insurance Policies Work Together
Businesses require several insurance products in order to stay open and remain competitive. These policies are intended to protect employees, physical property, and the equipment necessary for operation. Aside from these important policies, a business should also carry a Business Interruption Insurance policy.
How This Policy Helps You
To understand how a Business Interruption Insurance policy can help you, it helps to compare it with a related policy. A business’s property insurance protects the physical property from damage by helping to cover the costs associated with the repair of that property. This is clearly an important policy to have and a business interruption policy works very well in tandem. Instead of helping you cover the loss of physical property, a business interruption policy helps address the financial losses that can result if a business is shut down during a natural disaster.
A Business Interruption Insurance policy typically covers four main concerns:
- Fixed costs. These are expected operating costs, such as rent, or regular payments, such as a mortgage.
- Lost profits. Your policy can provide you with the profits that you would have been earned had your business been operating as usual.
- Temporary location. If you need to relocate to a new site while damage is being repaired, you can receive assistance with this expense.
- Extra expenses. This includes reimbursement up to a certain point for other necessary business-related payments.
Because each of your business’s insurance policies need to work together, talk with your insurance agent about using each one to its fullest advantage. They can answer your questions and help you find policies that meet your particular needs.