Insurance Coverage for Business Interruption in Natick, MA
No matter the size of your business or the industry you’re in, you can benefit from business interruption insurance. Business interruption insurance can protect your business from losses due to unforeseen events that cause temporary business closure. At Connell & Curley Insurance Agency, we have been providing highly individualized insurance services in Massachusetts since 1965. Our seasoned insurance professionals can help you determine what level of business insurance coverage you need and guide you in choosing the right plan. Call now to schedule a consultation to discuss business interruption insurance in Natick, MA.
What Is Business Interruption Insurance?
Business interruption insurance can help you recover lost income and operating expenses should your business have to close due to a covered event. Business interruption insurance can be purchased as a standalone policy or as a rider on an existing business insurance or property insurance policy.
How Can Business Interruption Insurance Help Your Business?
Some businesses, especially small local businesses, are just one financial disaster away from having to close their doors for good. If your business suffered from an unexpected setback like a fire, flood, property damage, or natural disaster, how long could you stay afloat if you had to close for repairs? Business interruption insurance can help businesses recover from unexpected disruptions of up to 12 months.
What Does Business Interruption Insurance Cover?
Your business interruption insurance coverage may depend on your insurer, the industry you’re in, and the location, age, and condition of your commercial property. Some examples of business interruption insurance coverage are:
- Lost Income or Revenue – This includes any income you would normally make if your business was open.
- Mortgage or Rent Payments – This covers mortgage, rent, or lease payments for the space where your business operates.
- Loan Payments – The insurance will cover any loan payments you need to make during the time you are closed.
- Taxes – This includes property taxes and employment taxes, whether paid monthly or quarterly.
- Payroll – Your employees will still be paid their regular wages.
- Training Costs – The costs associated with training your employees how to use new machinery or equipment after a covered loss.
- Extra Expenses – This includes any other expenses you incur due to the damage to or closure of your property.
- Relocation Costs – This covers the costs of moving into a new space, whether permanently or temporarily.
Does Your Business Need Business Interruption Insurance?
Business interruption insurance is crucial for businesses of all sizes. Most business owners have enough in their operating accounts to cover a few weeks or months without any income generation. However, when that money is gone, they will no longer have the funds needed for rent, utilities, employee wages, property taxes, income taxes, vendor payments, and other expenses. When you have business interruption insurance, you have a safety net that will offer protection if your business has to shut down temporarily.
How Business Interruption Insurance Works
Business interruption insurance can be purchased as a standalone policy or may be included in your business owner's policy (BOP), which includes commercial property insurance or liability insurance coverage. Your commercial property insurance will cover any physical damages to your business, while your interruption insurance will cover lost income and other expenses. When your business suffers from a covered event, you will file a business interruption insurance claim with your insurer. They will conduct an investigation over the phone or in-person to assess the damages, confirm it was a covered event, and calculate your lost revenue.
Types of Business Interruption Insurance
There are several different types of business interruption insurance. The type you choose will depend on the likelihood of different types of claims you may face, the location of your business, the type of business you have, and the age and condition of your commercial property. The most common types of business interruption insurance are:
- Business Income Coverage – This type of coverage can replace lost income and help you cover expenses if your business is forced to close due to a covered event. These expenses might include missed income, rent, taxes, payroll, and more.
- Extra Expense Coverage – This type of coverage can assist you in handling additional costs in order to avoid or mitigate closure. This may include temporary rental space or equipment, overtime wages, and moving or relocation costs.
- Contingent Business Interruption Coverage – This type of coverage can protect your business from a loss caused by supply chain disruption or issues with a vendor your company relies on. You could receive compensation for lost income.
- Extended Business Interruption Coverage – This type of coverage protects you against lost income that occurs even after your business is up and running again. It can restore differences in income while you regain your normal operating hours or conditions.
- Civil Authority Coverage – This type of coverage protects your business from losses due to government-mandated closures, such as an evacuation or curfew. You may be able to get compensation for lost income.
Schedule a Consultation to Discuss Your Business Insurance Needs
At Connell & Curley Insurance Agency, we can handle all of your insurance needs in person, online, via email, or via text. Our experienced staff includes certified insurance counselors, chartered property and casualty underwriters, licensed insurance advisors, and certified risk managers. We offer personal and business insurance coverage, including auto and home insurance, health and life insurance, business insurance, and more. Call us now or contact us online to schedule a consultation to discuss business interruption insurance in Natick, MA.