A business can be shut down for a number of reasons. Your business or commercial insurance policy will cover the cost to repair or rebuild your building, and replace business property. But are you protected if it takes time to re-open? Business Interruption Insurance keeps you financially stable during the period that you are forced to vacate. You can continue to provide your employees with pay, and manage bills during the period in which the business cannot operate.
When considering business income, you also need to determine if you have certain risks that would require specific limits within the overall coverage. If these are not managed correctly, you may suffer a loss and not have enough insurance to ensure your recovery.
Business Income Insurance
- Peak Season – If your business has seasonal income, you will want to adjust your policy accordingly. Don’t just average your income out over 12 months; that may not be adequate coverage.
- Period of Recovery – When you consider your recovery time, (the amount of time to fully resume operations) you may need to take into account any special construction needs. For example, you may have unique equipment that will take several months to design and construct. Knowing this will help you design your coverage to meet your needs.
- Payroll coverage--Under this coverage, you can select who you want to offer payroll continuation to. However, you must do this prior to the loss. You can also add categories of workers and even managers.