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Don't Forget Business Interruption Insurance

A new client recently told me he incurred heavy losses after a flood since his business could not operate. I asked did your property insurance include a rider for business interruption insurance?

Unfortunately, his answer was no.

Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance, such as a fire. or flood.

A typical Business Interruption policy can provide coverage for three things:

(1) The profits you normally would have earned if the incident did not occur.

(2) Normal operating expenses, even though the business is temporarily closed. This includes your employees' wages so you can keep them on staff during the interruption.

(3) The expense of moving your business to a temporary location. This might include both moving and rent costs.

Like any insurance policy, there are many exclusions and lots of detail in the fine print.

What Keeps You Awake at Night as a Business Owner? Having worked with businesses of all sizes from solopreneurs to an enterprise with over $1 billion in sales, I have heard many issues (financial and nonfinancial) that may help your business.

To schedule a business consultation, contact me today.