If you have a fire or water emergency, please call us now at (800) 734-0602

To have the optimal experience while using this site, you will need to update your browser. You may want to try one of the following alternatives:

Fire & Water - Cleanup & Restoration

3 Reasons To Have Business Interruption Insurance

5/12/2019 (Permalink)

Business interruption insurance can be used to cover these regular expenses

Three Reasons Why a Business Should Have Interruption Coverage

Extensive property damage may prevent a business from operating for days or weeks. A business interruption insurance rider or endorsement can cover lost revenue, operational expenses and the costs associated with a temporary relocation during a rebuild. This endorsement or rider supplements a general commercial property policy that covers damage to the structure or contents of a building in Cranston, MA


1. Limiting Lost Revenue

Interruption insurance can make up for revenue lost during damage cleanup and restoration. Extensive fire, storm or water damage may take days or weeks to repair. Business owners should obtain at least enough coverage to offset revenue and expenses for several business days. A waiting period of 48 to 72 hours may be necessary before coverage applies.

2. Continuing Operational Expenses

Several expenses may continue unabated after a disaster. These include payroll, commercial rent or lease payments, utility bills and taxes. Business interruption insurance can be used to cover these regular expenses at a temporarily closed business during a rebuild. It is important to regularly perform an impact analysis to determine exact operational costs and adjust the coverage level accordingly.

3. Temporary Relocation Costs

If it is possible to work out of a temporary location, interruption insurance can help to cover relocation costs. The coverage will not continue if a business can effectively operate out of another location or an undamaged portion of the primary property.

A business owner should determine whether the cost of maintaining an interruption policy is worth the peace of mind this coverage can provide. When a building sustains damage, the property owner or manager should contact a commercial mitigation and restoration company located in Cranston, MA, and prepare to file a property insurance claim. Certified professionals can complete a cleanup and rebuild in less time, which may lower an interruption insurance claim.

Other News

View Recent Posts