How would you make ends meet if a fire or storm caused you to suspend your business operations for an extended period of time?  How would you make up the lost revenue your business would have normally earned?  Your utility bills won’t stop just because you’ve temporarily closed the doors to your business.  The best solution may be to add business interruption insurance to your property insurance policy.

Add Business Interruption Insurance to Your Business Property Policy

Business interruption insurance provides compensation for lost income if your company is forced to vacate the premises due to damage caused by a disaster covered under your property insurance policy.  However, only 35% of small businesses have business interruption insurance according to the National Association of Insurance Commissioners.  Business interruption insurance is not sold as a stand-alone policy.  Rather, it is an optional coverage you can add to your property insurance policy.

Business Interruption Insurance- What Does It Cover?

If your business is forced to close its doors while your premises is being repaired, you can lose business to your competition.  Getting your business back up and running again as soon as possible is critical. Business interruption insurance can help keep your business afloat in the interim.  Based on your financial records, business interruption insurance will compensate you for lost profits had the disaster not happened.

Business interruption insurance will also cover your utility bills that continue to come in even though you’ve temporarily closed your doors. Some business interruption insurance will also provide coverage for your payroll as well.

What to Consider When Buying Business Interruption Insurance

It’s important not too underestimate the time it may take to get your business back up and running.  When buying business interruption insurance, make sure your policy limits will provide coverage for a sufficient number of days.  Also, most business interruption insurance policies include a 48-hour waiting period before your benefits begin.

Extra Expense Insurance Can Help Keep Your Doors Open

If you’re determined to keep your business operating even if your premises are damaged by fire or a major storm, you may want to consider extra expense insurance.  Extra expense insurance will compensate your company for expenses required to keep your doors open during restoration.  Typically, extra expenses will be paid if they will help lower your business interruption insurance costs.

You’ve worked hard to get your business established.  Suspending business operations due to a fire or storm can cripple your finances.  Buying business interruption insurance is a great way to keep your business afloat while repairs are being made.

If you need to get a new business insurance policy, get a free quote by using InsWeb.com’s online business insurance quote form.  Make sure you add business interruption insurance to your standard business insurance policy.