Business Interruption Insurance: When Disaster Strikes

Don’t Let a Catastrophe Halt Business: Get Business Interruption Insurance

By Rafael Onak, InsuranceAgents.com Staff Writer

As Milton proved at the end of the 1999 comedy Office Space, business interruption insurance is a necessity if you’re hell-bent on running a successful business. It can be difficult to please every employee in an office, especially if you take his/her stapler away and move their desk into the dark trenches of the building’s basement. But with an adequate amount of interruption insurance, you can rest assured knowing you will be covered if you find your place of business burned down to the ground.  Business insurance can include many unknown circumstances that could cause problems with work flow.  Make sure you understand how you're covered by talking to a business insurance agent.  Find one in our local agent finder, it's fast and free.

What if a catastrophe, such as a fire, tornado or flood, causes your business to have to temporarily relocate?

Business Interruption Insurance Cover The Following:

• Profits the company would have earned had your property not been affected by a catastrophe and forced to relocate.
• Any expenses the company pays for, such as electricity and heat, which may occur even if your businesses operations are put on a temporary hiatus.
• Depending on your interruption policy, expenses that the company takes on while running from the temporary location while the original business building is being renovated might be covered as well.

Keep in mind that a business interruption insurance policy is not your standard policy. It is not sold by itself, but instead is most commonly added onto a property insurance policy or included in a separate package. More often than not, it takes longer to renovate a building than initially anticipated. Due to this, it is in the company’s best interest to make sure your policy lists a sufficient amount of time to rebuild the original business location.

Price Factors of Interruption Insurance

The price of a business interruption insurance policy depends on a number of factors, particularly the location, premise of your business and how easily it adapts to operating out of a different location. If your business involves tornado hunting or experimenting with hazardous chemicals, chances are the price of your policy will out of this world.

On top of making a profit and keeping the morale of every employee high, business owners also need to ensure that their business stays financially afloat should a catastrophe strike. Don’t let the Miltons’ of businesses brings yours down and invest in a quality interruption insurance policy today.

Published: Tuesday 10th November 2009