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Fire & Water - Cleanup & Restoration

Survive a Disaster With Business Interruption Insurance

9/5/2020 (Permalink)

One of the best types of protection comes in the form of business interruption insurance

Types Of Protection

As a business owner in Santa Ana, CA, you're probably already aware that you need insurance for the safety of your property, inventory, equipment, and other elements of your business. Without the right insurance, after all, you could never rebuild after a devastating natural disaster or other huge commercial loss. One of the best types of protection comes in the form of business interruption insurance. Of course, you may already have some of the following types of protection:

  • Professional liability insurance
  • Property insurance
  • Workers' compensation policies
  • Product liability insurance

Each of these types of coverage offers business protection in unique ways. For example, if an employee is injured while working, workers' compensation coverage helps with medical coverage and lost wages.

Get Compensation for Missed Revenue
Business interruption insurance is specific coverage the protects your business when disasters force you to shut your doors temporarily. Even if you only miss a couple of days, you could suffer a large amount of lost income. This type of insurance provides you with compensation for the lost business income you would have earned if the disaster hadn't happened. It's important to understand that there are limitations to this coverage.

Prepare for High-Risk Situations
You may have other policies that help you rebuild any physical damage to your closed business. Interruption insurance compensates you for lost profits during the time that you aren't able to operate. Before you can purchase this coverage, you need to accurately track your net income. Talk this over with your accountant because the amount of your net profit during normal business operations could affect the amount of compensation you qualify for during a major event that closes your doors.
It's also important to consider the most likely scenarios for business closure. If you live in a high-risk flood zone, for example, you need to include interruption coverage for flooding (and should also have a flood policy in place in your general policy.

Keep Up With Financial Obligations
When water, fire, storms, or other disasters shut your doors and force you to move operations elsewhere, you'll need some type of compensation to stay afloat as fire and water damage professionals put your office back together. While you wait during this rebuild process, rely on your business coverage to pay employees and keep up with other financial responsibilities.

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