Arnold, Bruce & Doerfler Insurance Blog
Basically, standard property insurance provides protection to your business against loss or damage, for example, stolen equipment, storm-damaged building, or office furniture that is destroyed by a fire. This insurance coverage can help you pay for the replacement or rebuilding costs of the damaged property.
However, there may be instances that your business will suffer from certain losses and temporarily stops its operation due to property damage. This kind of loss requires business interruption insurance. This insurance typically covers fixed expenses like rent and utility costs.
What Is Business interruption Coverage?
You cannot purchase this coverage as a stand-alone policy. Instead, you can obtain it as part of your business owners policy. A BOP is specifically designed for small businesses. It is an insurance package policy that comes with business interruption, liability, and property coverage.
The Coverage You Need To Sustain Your Business
In the event that a damaging event causes your business to temporarily halt, you lose profit. The reason could be a windstorm, fire, or other disasters. But in spite of this, the bills and other expenses continue to come and your obligation to pay them goes on as well. The disruption may also give you additional expenses.
The good news is, there will be some reimbursements of these costs if you have business interruption coverage. This policy is beneficial for your business as it also helps you pay for operating expenses such as electricity.
The purpose of business interruption coverage is to cover the continuing expenses and net profits of your company for a specific period after a covered peril. For example, your rented office building was seriously damaged by a fire, causing you to relocate temporarily. But, not all of your customers follow you to the temporary location, hence the drop in your revenue.
After deducting the ongoing expenses of your business and assessing your financial records, the business interruption policy would reimburse your loss of profit. Also, the policy could help you pay for the costs of your utility to the new office and additional rent.
Consider adding business interruption to your business owners policy. Your insurance agent can recommend the best coverage to help your business in rent and utility expenses in the event of business interruption.
At Arnold, Bruce & Doerfler Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (503) 222-1951. Get your free quote today by CLICKING HERE.