The Benefits of Interruption Coverage

12/9/2020 (Permalink)

4 Ways an Interruption Policy Can Protect Your Business

A fire or flood in your commercial property in Southern McHenry County, can leave you scrambling not only for the money to repair your building and the surrounding area but also for the revenue to pay the bills while operations are slowed or suspended. Interruption insurance covers the costs of your basic operations. It can mean the difference between slowing business down for a little while and going out of business altogether. Here are four ways an interruption policy can protect your business.

1. Income Compensation

Your business interruption policy is likely to replace most of the income you would have earned during the designated time. The amount you are eligible to receive often depends on financial statements and projections from your company. It protects your business from going bankrupt while you are getting back to normal.

2. Temporary Relocation

If the repairs your building needs are extensive, you may have to relocate your operations for a little while. Interruption insurance will often cover the expense involved in doing so. It may pay rent and utilities for an additional business operations center so that productivity does not have to suffer.

3. Utilities and Property-Related Expense

While fire restoration services are underway, you may still have to pay for basic utilities and property tax or rent in your own building that is being repaired. If that is the case, you will need an interruption policy that can pay those costs.

4. Employee Payroll

Just as your coverage protects you, you want to protect your employees. Many workers fear that their jobs will be in danger when the building is in jeopardy. An excellent business interruption policy supports you by supporting your staff and covering their paychecks.

Your interruption insurance allows you to protect your business while leaving yourself plenty of time to make sure repairs are done expertly and thoroughly. With proper coverage, you don't have to rush the recovery process.