Should I Get Business Interruption Insurance?
It is an unfortunate event when your business is impacted by property damage, whether it be fire damage, flood damage, storm damage, theft, vandalism, or otherwise. In any of these cases, you may have to reduce your business operations or even temporarily close your doors so that you can work towards fully recuperating. This is where business interruption insurance may come into play. Continue reading to learn whether you should get this insurance and how one of the experienced New York business interruption insurance attorneys at Craig Blumberg can help you decide.
What is considered business interruption insurance?
Simply put, business interruption insurance is a type of insurance policy that is intended to compensate for the difference between your business’s normal income and your business’s income during and after its forced shutdown. It may also compensate you for any expenses you incurred relating to your business’s recovery.
Of note, you may have to purchase this as a separate insurance policy, as this may be outside of the business income protection, profit protection, and out-of-business coverage that your current policy may provide.
In addition, once you purchase this policy, you may have to reach certain requirements for it to become available to use. For example, you may have to prove that there was physical damage done to your property, along with this damage having been caused by a covered “peril”. Or, you may have to offer evidence that this property was indeed where you conducted your business operations.
Why should I get this insurance?
Opting for business interruption insurance is one of the most important ways in which you may prepare for an unfortunate catastrophe. In other words, it may lessen the impact such a catastrophe may have on your business’s profitability and business functionality. This is because it may be set to cover expenses like employee overtime, moving expenses, storage expenses, rent for a new location, or any other costs related to such a catastrophe.
What’s more, it may even help you if your business has yet to make a profit. Examples are as follows:
- This insurance may help you pay off your business unit’s rent or mortgage.
- This insurance may help you pay off your business unit’s utilities.
- This insurance may help you pay off your business’s taxes.
- This insurance may help you pay off your business’s loan payments.
- This insurance may help you pay off your business’s supplier agreements.
- This insurance may help you pay off any other regular bill related to your business.
It should go without saying that you must consult with one of the skilled New York commercial insurance claim denial attorneys immediately. Give us a call whenever you can.