When running a business, you can’t control everything. There are many events beyond your control that may cause some business interruption, potentially leading to lost income and added expenses.
To help protect your business from potential financial losses in case of business interruption, you should get covered with business interruption insurance. Read on to learn what it is, what it covers, and how Melton McFadden can help.
What Is Business Interruption Insurance?
Business interruption insurance is a type of insurance that can cover your lost income in case an unexpected situation compels you to close your business temporarily. This is why it is often referred to as business income insurance.
Getting this type of insurance is also a smart choice to help you cover any extra expenses associated with closing your business for a specific period.
Typical Business Interruption Coverage
Business interruption insurance covers lost income, that is, the revenue that you would have generated if your business were operating normally. This type of insurance also generally covers operating expenses, such as employee wages, rent or lease payments, loan payments, and taxes.
Business interruption insurance covers business relocation expenses, as well. For instance, if a fire causes damage to your property, and you need to move your business to a temporary location, your business interruption coverage would help cover the rent and any other extra expenses.
An unexpected situation that can cause a business interruption is losing a partner, primary supplier, or customer. If you depend on a single company, business partner, or customer that suddenly goes out of business or moves to another city, you may suffer a considerable loss in revenue. What if there’s a fire or theft at your key supplier’s property? Such an unexpected peril would prevent you from delivering products to your customers.
This is where contingent business interruption insurance can help. Contingent business interruption coverage can help cover lost revenue and all your expenses necessary for keeping your doors open.
What Business Interruption Insurance Won’t Cover
Business interruption insurance cannot cover the cost of repairs of a fire, flood, lightning, earthquake, falling objects, theft, or any other unexpected peril causes damage to your property. It can cover only your lost income, operating expenses, and business relocation expenses.
Your business owner’s policy (BOP) or property insurance would cover the cost of damage repair.
Business interruption insurance also cannot cover utilities and closures resulting from electrical outages. You also can’t get a reimbursement if you only partially close your business and continue to operate.
This insurance also cannot cover your undocumented income. Your insurance company needs proof of previous revenue to provide you with the right compensation, which they cannot do in case of unaccounted income.
Last but not least, you can’t get your income coverage if you voluntarily close your business.
Melton McFadden Business Interruption Insurance
With Melton McFadden’s business interruption insurance, you can have complete peace of mind when an unforeseen circumstance forces you to close your doors temporarily. It can cover all your lost revenue and help you provide your employees with their wages to keep them on staff while you get back on your feet.
It can also help you pay your taxes, and provide all your monthly rent, lease, or loan payments. Furthermore, it can help you pay the rent of your new temporary location if you need to relocate your business due to a fire or other property damage.
Partner with Melton McFadden Today!
Melton McFadden is a leading customer-centric business with one goal in mind – providing our clients with complete peace of mind during difficult times. We’re here to help you cover your financial losses when an unexpected situation arises and causes costly business interruptions. We are here to help you quickly get back on your feet.
We understand that business interruption can lead to very high expenses, which is why we offer business interruption insurance policies at the most competitive prices.
Feel free to get in touch if you have any further questions about what our business interruption insurance covers.
Contact us today to discuss your unique situation and request a business interruption insurance quote. We will help you choose the right business interruption coverage for your unique needs!