You probably feel confident that the commercial insurance you purchased through Kale Insurance is adequate protection for your Lincoln, NC small business. Hopefully, you have coverage for liability and property, auto, and any other important needs.
You may not have considered business interruption insurance, because you don’t expect for your business to be closed for an extended period. But if there is a disaster and your business is temporarily shut down, your bills will pile up while you wait to get back to work. When you can’t provide your normal services or produce your products, you won’t have the income to pay those bills.
What is Business Interruption Insurance?
If there is a disaster big enough your business will be closed and you may even have to rebuild. Business interruption insurance is a kind of policy that will kick in to replace your income so that you don’t have to depend on savings or loans just to stay afloat.
There is also contingent business operation coverage, which can protect you if one of your major suppliers, partners or customers is shut down because of a disaster.
What Does Business Interruption Insurance Cover?
Here are some of the items usually covered by business interruption insurance:
- Profits you would have earned during the interruption, based on prior financial records for prior periods.
- Operating expenses, again based on records kept by your company showing historical costs.
- A temporary location might be provided for if your regular location is temporarily unavailable because of the disaster.
- Civil authority or government-mandated closures, caused by special circumstances like curfews or temporary street closures.
- Other expenses may also be covered if it can be proven that they are necessary for business operation.
If you have any question about business interruption insurance, or if you would like to discuss a policy for your Lincoln, NC business, please feel free to give us a call at Kale Insurance so we can help you out.