Was your business shut down unexpectedly and for reasons that were beyond your control? If you are reading this, chances are, the answer to that question is “yes”.
You depend on your business. You count on the physical-based assets in which it houses. You require consistent interactions with customers. Your business is more than just your passion. It is your livelihood.
You must make back all of the money that was lost during the closure. But, how do you do that? By obtaining business loss insurance. Continue reading to learn more.
What is Business Loss Insurance?
Business loss insurance – often referred to as “business interruption insurance” – is a type of coverage which must be added to a commercial property insurance policy or purchased as part of a BOP, or “Business Owner’s Policy”.
It may also be advertised as “business income coverage”. In short, business loss insurance aids in the replacement of your lost income and also assists in paying for the operational expenses of your business in the event that your business has been shut down due to circumstances beyond your control.
This type of insurance provides many financial gains during periods that could – otherwise – be potentially devastating to your financial livelihood.
Not All Businesses Have This Protection
Many business owners are under the impression that the insurance that they currently carry on their business – be it a commercial property policy or a general liability policy – covers financial losses during shutdowns. Unfortunately, this is not the case.
The National Association of Insurance Commissioners state that only a small 35% of all the small businesses within the country currently possess interruption insurance coverage.
It is true that most policies will cover or replace items that are damaged or even taken; however, they will not cover any type of income or expenses lost during periods of closure beyond the owner’s control.
Business Loss Insurance Coverage
The coverage associated with business loss insurance will cover the income that you have lost as a result of an unexpected shutdown and will also cover the amount that you will need to continue operations and successfully recover from the shutdown.
The following is a small list of the coverage that you can expect to receive if you suffer from interruptions to your business when you have this type of insurance:
- Mortgage/Rent/Lease Payments – If you run a traditional brick and mortar business, you likely have rent to pay, a lease, or a mortgage on the building it is housed in. Regardless of whether or not your business is operational, you will still be responsible for these payments.
- Income That is Lost – If your business shuts down, you will lose income. This coverage will help you get back your money.
- Payroll – If you have employees, this coverage will make sure that they are paid – even during a shutdown.
In addition to the above, business loss insurance will cover any type of payments your business owes, taxes, and even relocation costs. Today is the day to get business loss insurance in New York. For more information, contact us today at: 718-855-1836