What is business interruption insurance? What does it cover?

Obtaining insurance is an important part of caring for your business in Bethlehem, PA. Although the details of your basic plan may vary, it is often a good decision to purchase business interruption insurance for additional protection against the loss of income when a disaster occurs.

Basics of the Plan

As the name suggests, business interruption insurance is designed to address the concerns of a company when it is not possible to run the business for a specific period of time. It covers the loss of income after specific situations arise so that the business does not face financial strife when it cannot serve customers for any reason.

Depending on the plan that you purchase, the situations that are covered and the particular details of making a claim may vary. Some insurers may have a limitation on the amount that you can claim based on the number of days that your business is closed, so read your policy to determine the amount that you can claim on your account.

Combining the Coverage with Other Plans

Even though the policy can help reduce the financial risks of a company, the plan has the most impact when it is combined with property protection and other forms of insurance based on the type of company that you are running and the assets that you own.

The policy is designed to pay for the loss of income that you may face after a natural disaster or a similar problem occurs. It will not pay for any damages to company property or similar expenses.

Protecting your business requires the right types of insurance to avoid unnecessary risks and hassles. In many cases, business interruption insurance is a useful way to avoid financial strife while your business rebuilds after a disaster. Contact us to talk to an agent for more information about your coverage options.