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Business Interruption Insurance- How Long Does It Last and What is Not Covered

Business interruptions can take many forms, but the result is still the same at the end of the day. Your company is put in such a financial bind from which it cannot work its way out. This is where business interruption insurance can save the day for everyone involved. While it may not take care of all the issues that a business may face, it does offer short-term financial help.

Read on to know how long business interruption insurance lasts, what it covers, and what it does not cover.

Restoring the Business

Restoring the business will take time. While this is taking place, bills will still need to be paid. During the restoration period, your insurance policy will be able to take up at least part of the slack caused by the shutdown. Although it won’t cover everything, it will cover many of the necessities required to keep the business up and running even through the leanest of times.

What Is Covered?

Business interruption insurance covers many of the necessities that must be paid to keep the company functioning. This includes any relocation expenses, rent/lease payments, employees’ wages, loan payments, and taxes. These are the kind of expenses that keep the company moving forward. Defaulting on these types of bills would cause the doors to shut permanently in a very short time. Using the benefit of business interruption insurance, you can save your company and get it through the most challenging periods.

What Is Not Covered?

There are several things that business interruption insurance does not cover. It will not cover the cost of utilities or unverified income. Neither will it cover the shutdowns that result from downed power lines or earthquake/flood damage. Business interruption insurance won’t cover voluntary shutdowns that a company may take for two or three weeks out of the year. As a business owner, you must work with your agent to determine what types of loss will be covered under this type of insurance. Ask questions if you aren’t sure of something. Make sure you are fully informed so that you know when to file a claim.

The Benefits of Business Interruption Insurance

The loss of revenue when a business’ day to day operations are interrupted can be overwhelming. It may be so catastrophic for a small business that they may never resume their operations again. 40% of firms don’t restart operating following a disaster due to insufficient business interruption insurance or lack of it.
With business interruption insurance in place, you can rest assured that many of your company’s necessities will be covered. This will allow you to use what funds the company has left to rebuild the business and start the process of recovery.

If you are curious about other insurance issues, contact the experts at Scautub Agency in Scotia, New York. We are ready to help with the insurance coverage you need.

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