Business Interruption Coverage

Business Interruption Coverage

May 03, 2021
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            Most business owners purchase insurance for their commercial property to assist with the cost associated with replacing their buildings and contents following a covered loss.  While this is a significant exposure that every business has, there is another critical property coverage that may not be addressed when the policy is written.  What happens to your ongoing business expenses while the building or contents are being repaired or replaced?  How can you pay your employees during the rebuilding process if you do not have revenue generation?

            The answer is a coverage form called “Business Income and Extra Expense” and it can provide essential funds to maintain your operations during an unexpected shutdown.  There are several ways to calculate the exposure that your company has.  The reason that many companies do not have this coverage is that it is traditionally not required by lenders and most agents do not understand how to accurately analyze the needs of their clients.

            The Galt Insurance Group assists our clients in determining their needs based upon their type of operation, ongoing obligations, and several other factors that assist in the creation of an appropriate limit of coverage.  There are additional endorsements available to provide coverage in the event of a loss of utilities and other “off-site” interruptions which will provide coverage even if your structure is not impacted by direct damage.

            We look forward to discussing this coverage with you and how it can help provide piece of mind in the event of a loss.  As a business owner, we understand how hard you have worked to build your company.  We can help you ensure that your business will continue regardless of the duration of an unexpected shutdown.