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Fire & Water - Cleanup & Restoration

Do I Need Business Interruption Insurance?

1/7/2019 (Permalink)

Commercial Do I Need Business Interruption Insurance? Fire damage in a Germantown, MA building

While the physical damage of a business fire is bad, the impact of interrupted business can be crippling. Clients can be lost, competitors can gain an edge, and income decimated. Fortunately, there are fail safes to keep Germantown, MA, business owners from going under after a fire accident. Learn how business interruption insurance can help you remain solvent after a fire catastrophe.

Do I Need Business Interruption Insurance?

Nobody expects a fire, so investing in this type of insurance can seem like a pointless expense. But you could truly benefit from this insurance if you:

  • Operate a food establishment with cooking appliances
  • Derive more than half of your monthly income from your business
  • Have high staff overhead

What Is It?

BI insurance, also known as business income insurance, is simply insurance to cover income lost if your building is in a disaster. It typically covers the income loss associated with closing entirely or not running the business during fire cleaning. Unlike property insurance, which only covers physical damage, this insurance is meant to keep your business afloat by covering fiscal damage.

How Do I Get It?

Unlike standard property insurance, this type of coverage is not a standalone policy. Rather it’s an add on and can be tailored to fit your specific needs. This can cover profits as well as:

  • Fixed costs
  • Temporary relocation
  • Extra expenses

Getting a policy is as simple as letting your property insurer know your interest and adding it on based on your typical income and expenses.

How Much Do I Need?

When choosing a policy, don’t shortchange yourself. Plan for expenses covering more than a few days as it can take quite a while for your business to get back on track.

Commercial fires can be destructive, but they don’t have to destroy your hard work. Look into business interruption insurance so you’ll be secure while fire remediation is taking place.

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