The Benefits of Business Interruption Coverage

8/20/2021 (Permalink)

How Business Interruption Coverage Helps After a Disaster

The goal is to never have to reap the benefits of business interruption coverage, however, we know that no one or no business is 100% safe from disasters. An unexpected fire or a flood in your commercial property in Charlotte, NC can leave you feeling overwhelmed, especially financially. Disasters can call for large payments to repair the building and the surrounding areas, and a loss of revenue if operations are slowed or paused can make that all the more difficult. Not to mention, there could be a period of time where your team is unable to operate at all or may be forced to operate at minimized capacity.

General insurance will likely cover a large percentage of your property losses, but it is the interruption insurance that will handle the costs of your basic operations. Listed below are four ways that an interruption policy can help to protect your business.

1. Income Compensation: It is likely that your business interruption policy will replace most of the income you would have made during the time that your business is unable to operate at its full potential. The amount that you are eligible to receive usually depends upon financial statements and projections that are in place for your business. Interruption insurance will protect your business from going bankrupt while you work towards getting back into a normal routine.
2. Temporary Relocation: If the repairs needed to make your building safe for employees and/or customers once again are extensive, you may have to relocate your operations temporarily. Interruption insurance tends to cover the expenses that come with having to move for a little while. It also may pay rent and utilities for an additional business operations center so that the productivity of your business does not have to be compromised any more than necessary.
3. Utilities and Property-Related Expense: You may find yourself in a position to still have to pay for basic utilities and property tax or rent in the building that is being repaired. If so, you will need to pick an interruption policy that can cover these expenses.
4. Employee Payroll: While the financial burden can be hard enough on you, it can also hit hard for staff and employees. Many workers fear that their jobs will be put at risk when a dangerous situation strikes the building, but a good business interruption policy will support you AND your staff by covering their paychecks.

The advantages of having interruption insurance lie in the fact that it will help you protect many elements of your business while allotting you plenty of time to make sure the repairs are done as they should be. With sufficient coverage, you do not have to rush the recovery process.

When you have a commercial loss, SERVPRO of South Mecklenburg County knows that it feels like your world is suddenly turned upside down. You need to get yourself and your team back to work as quickly as possible!  We also know you may not know what steps to take or even how to begin to put your property back together, so that is where we come in for any of your commercial property needs.

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