Don’t Be In The Dark About Business Interruption Coverage

March 16, 2012||inBusiness Insurance|business income coverage, business insurance, business interruption insurance


Wayne Texeira, Marketing Director, CFMP

On the evening of Tuesday, March 13, I was in Boston to attend a play. I sat down in my seat at 7:30 pm and, snap! – the lights went out. No…it wasn’t the show starting; it was a significant power outage in Boston’s Back Bay area caused by a transformer fire.

Don’t Be In The Dark About Business Interruption Coverage
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Over the past few days, news coverage has focused on the losses of businesses located in the affected area. Think of the impact this had on the area. Restaurants, salons, retail shops, and other companies were forced to shut down.

Every business is concerned about power outages, which can cause substantial product and revenue loss. Beyond power outages, businesses are vulnerable to fire and other weather-related disasters that can stop operations for an extended period.

Business Interruption and Extra Expense Insurance

One way to limit potential financial losses is through Business Interruption and Extra Expense Insurance. Business Interruption (aka Business Income) Insurance covers lost revenue due to a covered loss that prevents your business from operating. Extra Expense Insurance reimburses your company for a reasonable sum of money that it spends, over and above everyday operating expenses, to avoid shutting down during the restoration period.

Most policies have a waiting period before coverage kicks in. Waiting periods and covered causes of loss will vary among policies. Business owners must review their policies closely to understand what is and is not covered.

Talking with a licensed insurance professional can help determine if Business Interruption Insurance and Extra Expense Insurance are appropriate for your business. While Business Interruption Insurance may not cover every instance of closure, not having coverage can be crippling. It’s not uncommon for companies to close permanently because they were unprepared for an unexpected closure and revenue loss.

Please Contact Us to learn more about Business Interruption Insurance.

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