While it is true that you may practice meticulous record-keeping and the best of all business practices, there are circumstances that may occur – beyond your control – that could devastate your business.
If you are forced to close due to an unforeseen and unexpected issue, you want to ensure that you are covered by business loss insurance. This is also referred to as “business interruption insurance”. Continue reading to learn more about this insurance coverage.
What Is Business Loss Insurance?
In short, business loss insurance is a special type of insurance coverage that aids in replacing lost income from your business if you find that you are forced to close on a temporary basis due to a loss that is covered on the policy.
Examples of these losses include fire and theft. As previously mentioned, it may be called “business interruption insurance”. In some instances, it may be identified as “business income coverage”.
In most instances, this type of insurance is included in a policy for business owners, often called “Business Owners Policy” or “BOP”.
What Is Covered by Business Loss Insurance?
Each business loss insurance policy is different, but the following may be covered:
- The income that your business typically generates
- The mortgage, the rent, or the lease you pay for the building of your business
- Taxes
- Loan payments
- The payroll
- Training costs for new equipment
- Relocation expenses
What Is Not Covered by Business Loss Insurance?
In most instances, the following is NOT covered by business loss insurance:
- Undocumented Incomes
- Utilities
- Damaged Property (This is typically covered under property insurance)
- Flood Damage
- Earthquake Damage
- Communicable Disease Closure
What Types of Businesses Need This Insurance?
Business loss insurance is a perfect match for most of the owners of small businesses – regardless of industries. If your business relies upon a physical-based location and any type of equipment, you should obtain this insurance.
It is perfect for retail stores, restaurants, groomers, studios, agencies, and a multitude of other types of businesses. If you are a small business owner, you should contact an insurance agent today to see if your business would benefit from business loss insurance.
How Much Does This Insurance Coverage Cost?
There are many factors that determine the amount that you will pay for business loss insurance. In most instances, policies may be as low as $40 a month to as high as $200 a month.
It all depends on your industry, how many people work for you, the location of your business, and your overall risk of making an official claim.
Contact Us Today
We here at Modica Associates specialize in all insurance types designed for businesses. If you are interested in this type of insurance, we recommend that you call and speak with one of our agents today.
In addition to business loss insurance, we can assist with transportation insurance, property insurance, and more! You owe it to yourself and your clients to get the most coverage possible. Call us now for immediate assistance: 718-855-1836