This guide will help you better understand the coverage provided by your business interruption insurance policy.
If your company has to shut down for a while after a covered loss, it can mean serious trouble. Even though you don’t have the income you need to keep up with bills, you can’t stop paying your monthly bills like rent and utilities. Luckily, a business interruption insurance policy can kick in to help your company stay afloat.
To help you better understand exactly what is covered by your business interruption insurance policy, keep these terms in mind.
- Business income – in most cases, your insurance company will cover the reduction in your company’s net income while your operations are suspended after a covered loss. The net income includes the amount that would have been earned at your company while operating normally, including all operating expenses.
- Actual loss sustained – your business insurance policy will cover the actual loss that your company sustains as the result of direct damage or physical loss by a covered peril. Your insurance policy will only cover losses that cause an interruption of your business which leads to a loss of income.
- Period of restoration – your insurance company will be held liable for the income your business loses during the period of restoration, which is the length of time that is required to repair, rebuild, or replace any destroyed or damaged property.
- Service interruption – which will cover the direct physical loss, destruction, or damage to gas, electrical, steam, sewer, water, or other service or utility that is necessary for your business operations.
When it comes to protecting your California business, having the right team of insurance experts behind you can give you the peace of mind that you deserve. Contact the experts at Stromsoe Insurance Agency for all of your commercial insurance coverage needs. We will work with you to ensure you have the right amount of protection, all at the right price to fit your budget.