Business Interruption Insurance: Safeguarding Your Operations Against Unexpected Disruptions

Regardless of preparedness and planning, businesses may eventually encounter situations in which they’re unable to maintain ideal operations. Many events can cause delays or disruptions in your company’s normal functions, and the resulting financial losses could quickly become overwhelming. The First Community Insurance & Annuity Center team in Bourbonnais, Illinois, understands these risks and is standing by to help you secure appropriate insurance for these difficult situations.

How Can Insurance Help With Business Continuity?

Business continuity should be a top priority for all organizations, regardless of size, sector or specialization. Fortunately, business interruption insurance, also known as business income insurance, can provide coverage capable of bolstering your company’s financial security and future stability following unexpected difficulties.

What Does Business Interruption Insurance Cover?

Business disruptions may stem from many types of incidents. While the specific capabilities of your business interruption insurance may vary depending on coverage selections and carriers, delays and issues caused by many common incidents, such as fires, vandalism, burglary and some types of water damage, are typically covered.

When submitting a claim following a covered interruption of your business operations, resulting payouts may help cover the following:

• Lost income

• Rent and mortgage payments

• Employee wages

• Loan payments

• Utility bills

• Tax payments

• Temporary relocation costs

How Much Does It Cost?

Insurance carriers must carefully assess your business’s situation when quoting you a rate for appropriate business interruption coverage. Although exact quoting processes may vary, they may often consider the following:

• Location

• Industry

• Revenue

• Workforce size

• Claims history

• Deductible

• Coverage limits

How to Get Coverage

Business interruption insurance may be available as standalone policies or endorsements added to commercial property insurance policies. Additionally, a business owners policy (or BOP), typically available to small- and medium-sized companies, may include such coverage.

Contact First Community Insurance & Annuity Center today to learn more about this important type of coverage or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.