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Fire & Water - Cleanup & Restoration

How Business Income Coverage Can Help You

9/4/2018 (Permalink)

Smoke and fire damage on a commercial property in Lemay, MO

A fire in your building in Lemay, MO, can be disheartening enough, but when you think of all the business you could lose because of it, it can be downright overwhelming. Interruption insurance can help you stay on your feet until the fire restoration in your building is complete.

Basics

If you have business interruption coverage, you can get the money you need to continue your basic operations so that you don' t have to shut down and risk closing permanently after a fire or natural disaster. A few of the things this policy could cover include:

  • Lost revenue
  • Relocation
  • Projected future income
  • Extra expenses

You probably won't be able to operate at full capacity after a fire, but interruption insurance allows you to keep your business open. It generally covers your lost income from the day of the disaster to the day the repairs and restoration are finished.

Payment

Your business interruption policy likely bases how much it pays out on the actual income you stand to lose during the restoration period. Unlike static costs covered by property insurance, this income is sometimes hard to quantify. You can fill out a business income worksheet to show anticipated income and expenses. Specifically, you can plan coverage for overhead and facilities, payroll and compensation of employees, and extra expenses. In order to be able to do this well, though, you must keep accurate records. If you have financial records from a few years back, you can identify patterns in your company's revenue and base your calculations on that.

Your commercial insurance package should not only cover the costs to restore the damage of your building and personal property. It should actually take care of your livelihood and that of your employees as well. With interruption insurance, you can recoup lost income and stay in business no matter how long the restoration process takes.

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