Regardless of what sector you work in, you know that the economy is unpredictable. Revenue can ebb and flow unexpectedly, and sometimes circumstances that are out of your control threaten to interrupt your livelihood. When this happens, the interruption of your business can be devastating to the bottom line. Luckily, though, there are business interruption insurance policies that offer protection against events that threaten to disrupt your revenue. Read on for more information if you’re wondering why you need business interruption insurance and how it can benefit you.
Are There Different Types of Business Interruption Insurance?
There are many different kinds of businesses, so of course, there are many different kinds of business interruption insurance, too. One of the most common types is service interruption coverage. This type of coverage typically protects carriers by providing business income reimbursement for losses related to damage, destruction, or direct physical loss. Another common kind of policy is contingent business interruption coverage. This is intended to cover lost business income that is caused by the damage or destruction of property that is owned by another party—but still imperative to the functioning of your business.
What’s Covered by Business Interruption Insurance?
What does business interruption insurance usually cover? Because there are several different kinds of policies, the coverage offered by business interruption insurance can vary widely. Some policies are designed to cover lost income while others may only apply to operating expenses. Typically, though, a good business interruption policy will cover both of these expenses as well as other business-related costs such as payroll, loan payments, taxes, and — if necessary — expenses associated with temporary relocation.
What Isn’t Covered by Business Interruption Insurance?
Every insurer has its own unique exclusions, so it’s important to review the summary of coverage before opting into a policy. Many policies include specific verbiage that eliminates coverage for events such as a pandemic or losses that occur during an event that’s covered by another policy. For example, if your business experiences loss of property as a result of flooding — and you carry an umbrella policy that includes flood coverage — your business interruption insurance likely won’t cover the cost.
Who Needs Business Interruption Insurance?
Business interruption insurance might not seem like an essential investment, but it is one of the best protections you can choose for your company. Every day, unexpected and unpredictable events wreak havoc on businesses throughout the U.S. Those who are prepared may be able to survive and continue operating, but those who are unprepared risk losing everything. You deserve to protect your business and its assets. Find a business interruption policy to ensure that you aren’t blindsided by an interruption of your business and its revenue.
About Provident Protection Plus
At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 60 years. We are a wholly-owned subsidiary of Provident Protection Plus Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.