Business Interruption Insurance
Many forms of commercial or business insurance policies are designed to protect others from negligence or other wrongdoing on the part of the business owner, while simultaneously protecting business assets in the event of a claim or lawsuit. Business Interruption insurance coverage differs from that in that it exists wholly to protect the interests of the business owner. Business Interruption insurance covers losses that result from natural disasters that would not otherwise be covered by traditional insurance. Specifically, it covers the profits that a business loses if it cannot operate, which is not the type of tangible item or damage that would normally be covered by an insurance program.
The amount of business interruption service needed will be based upon your current net income. Furthermore, business owners need to be aware of per-incident limits to ensure that their coverage is sufficient to cover the total damages from a particular incident, since the damages from a natural disaster can take weeks or months to remediate. In addition, you need to make sure that your business interruption policy will cover the problems that you are likely to face. For example, hurricanes can cause power outages that last for weeks, but many interruption policies do not cover utility outages.