Pearson Wallace Insurance, LLC
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Business Interruption Insurance

 

Business Interruption Insurance Agency In Western MA Serving New England

 
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Business interruption insurance can replace lost income and cover the costs of extra expenses when a business is disrupted by a covered liability. Business interruption insurance coverage is usually combined with, or added to a business owners insurance policy

What Does Business Interruption Insurance Cover?

Business interruption insurance protects against loss of income after a covered issue disturbs a business. Covered risks are typically wind, fire, lightning, falling objects, or theft. We can help you go over your policy to make sure you are covered.

If a fire damages your business destroying inventory, rendering the building uninhabitable, and preventing the latest shipment from going out. Your business interruption insurance policy may reimburse you by:

  1. Covering the loss of income from merchandise lost. In this case, your pre-damage earnings are used as the basis for compensation. Lost earnings are often defined as revenues minus ongoing expenses.

  2. Covering the cost of some extra expenses. For example, renting a new base of operations, storefront, warehouse, etc.

*Business owners insurance would cover the cost of rebuilding from the fire, business interruption insurance serves to soften the blow as you get back on your feet by compensating for lost business.

How Much Coverage Do I Need?

Business interruption insurance usually has a coverage limit. Losses that exceed your coverage limit are usually become your burden. That is why it's important to choose the right coverage limits for your business.

Things to consider when looking for a business interruption insurance policy:

  • How long could it take to get back to business after a loss?

  • How long is the “restoration period”, when does it kick in?

  • How well protected is your rented space, if applicable?

  • Is the fire protection in the building up-to-date and functional, sprinklers, alarms, etc.?

  • How long would it take to find a suitable temporary location?

A helpful tip

If your business is damaged a business owner, in certain situations, may need to put measures in place to ensure further damage is minimized. For example, if high winds break a few windows, you would be expected to board up those windows. This would keep the property secure and diminish the possibility of further damage

Document any repairs you make yourself, especially those immediately following damages. Insurance companies will often cover those costs because it saves them possible further costs if you had not stepped in. 

We can help you decide which policy is best for your situation. Our representatives make the complex process of finding the right coverage easy to understand.

Pearson Wallace business insurance agents operate throughout New England and Massachusetts serving: South Boston, East Boston, Dorchester, Amherst, Pittsfield, Southern Berkshire County, Sheffield, Great Barrington, Lee, Lenox, Stockbridge, West Stockbridge and all towns and cities in Western MA.