What is Business Interruption Insurance?

December 13, 2012

Let’s say your business is destroyed in a fire, and you and your employees are no longer able to work there until repairs have been made. This would be devastating news for any business, but especially if you’re in a competitive industry. Even a brief interruption could mean the end for some businesses.

Business interruption insurance compensates you for any lost income due to disaster-related damage that is covered under your property insurance policy, such as fire or windstorm damage. In other words, your insurance coverage will pay for the profits you would have made if the disaster had never occurred based on your financial records.

Do I have business interruption insurance?

Business interruption coverage is not sold separately. Instead, you have an option of adding it to your property insurance policy. The coverage is also sometimes included in a package policy.

How much does business interruption insurance cost?

The cost of a business interruption insurance policy is dependent on the type of business you’re insuring. A business with a higher risk of fire or other disaster would generally pay more for the coverage than a business with a lower risk.

For example, a car repair shop would most likely pay more for business interruption insurance than a flower shop because the risk of fire at a car repair shop would be higher.

To learn more about business interruption insurance in Ohio and Kentucky, contact Burkhart Insurance Agency. As an independent agency, we can help you find the best coverage for your business.

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