It is the worst nightmare for a small business owner. Due to fire or natural disaster, the central office is erased, leaving the team in the absence of computers and office equipment and doing nothing. The right property insurance policies apply to small business physical loss and damage, but it takes extra time and money to recover customer service.
Fortunately, there is a special type of insurance specifically designed to keep your IT business running for the worst. This insurance, are called “business interruption claims”, is generally provided as part of a commercial policy or property insurance included in the BOP.
What is business interruption claim and how do I know if it is necessary?
In the case of a claim for guaranteed property damage in the business where the insurance is covered, this type of insurance covers loss of income due to damage to property as estimated by reviewing the financial records. This income ensures continued overload and employee wages during business restarts. For example, for invoices that do not stop when the business is temporarily closed, such as a utility company, insurance is applied.
Small businesses that may temporarily close due to unexpected losses due to damage to physical property can benefit from small business interruption claims. This specific coverage is also called “business income coverage” or “income insurance.” You can also pay the additional costs you might incur to manage your business in a temporary alternative location, taking into account the additional cost insurance.
What does business interruption claim cover for business interruptions?
Most business interruption insurance policies cover two areas:
-The benefits when the business is not temporarily stopped based on financial records.
-Operating expenses, including utilities that must be paid even when not in the business
-Expenses associated with moving and operating to a temporary location during repair (read more, as this “additional cost insurance” is not automatically included in all policies).
What is considered a covered commercial break?
Business interruption insurance applies to all business interruptions resulting from claims subject to property damage insurance policies. In general, this includes fire, theft, storm damage, and other insurance risks specified in insurance. Please read the policy carefully to determine if damages caused by floods or earthquakes will be compensated.
Also, business interruption insurance may also apply if a business breaks into and has stolen critical equipment, or if the facility is damaged or destroyed to an unusable level. Please note that there is generally a 48 hour waiting period before coverage begins.
How much compensation for business interruption do you need?
Your agent or broker can help you determine the appropriate coverage. In general, the amount of coverage required and the premium to be paid are proportional to the amount of risk inherent in the commercial operation. Small IT companies, for example, have a lower risk of fire damage than an auto repair business that stores flammable materials on-site. Another consideration is the speed at which the company can transfer and resume work permanently or temporarily. Go right here to find out more details.