Understanding Business Interruption Insurance

Sometimes circumstances beyond your control force you to temporarily close your company, resulting in a loss of income. Business interruption insurance can help reduce the financial havoc a temporary closure can bring. This type of coverage can help replace business income when your company cannot open during normal operational hours.

Green Family Insurance Inc., serving customers in Illinois, can help you determine whether your company should include provisions for this coverage in your commercial policy.

What Does Business Interruption Insurance Cover?

This type of insurance pays you for expenses incurred by a covered peril such as severe storms, fire, theft, or even an unexpected closure due to a curfew imposed by a local government. Your business would receive compensation for expenses you would still have to pay even though it is temporarily not operating and making money. Past business records usually determine the amount payable for each incident. Some policies have exclusions for specific incidents.

How Long Does Coverage Last?

The policy our agency writes for you determines how long you will receive payments. Generally, coverage ends when the business interruption period ends. The standard policy covers 30 days beginning on the date of a covered peril, but with an endorsement, you can extend possible coverage for up to 360 days. 

Who Needs Business Interruption Insurance?

This insurance is a good option for most small businesses but is especially useful for those that rely on a physical location or have assets like machinery that covered events could affect. Businesses that could benefit include retail stores and restaurants, service companies like salons and spas, and exercise studios.

How Much Insurance Should I Get?

Most commercial insurance policies require a rider for business interruption coverage. Green Family Insurance Inc. serving the residents of Illinois, can help you determine an appropriate amount.