FRIDAY, AUGUST 18, 2023
Your business’s ability to deliver timely and reliable services is crucial to maintaining customer and client satisfaction and loyalty. Still, there may be instances where unforeseen events disrupt your normal operations, leading to delays and resulting financial losses. Given the potential ramifications of even brief disruptions of normal operations, an adequate business interruption insurance policy may be advisable.
What Is Business Interruption Insurance?
Business interruption insurance may offer financial protection following incidents that adversely impact your company's normal functions. Also known as business income insurance, this policy may provide a critical financial safety net to help your organization manage various expenses and financial losses following a covered incident. 
What Does Business Interruption Insurance Cover?
Your business interruption insurance policy may insulate your organization from various costs that might otherwise need to be paid out of pocket. Although the specific details of policies may vary, your insurance may include coverage for the following:
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Reduced income—This feature of your business interruption insurance may help your organization recoup revenue it would have earned under normal conditions.
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Fixed costs—This part of your policy may provide financial assistance for various business expenses, such as rent, loan payments and taxes.
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Payroll—This coverage may help your organization continue to pay its employees during a covered business interruption.
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Relocation expenses—If a covered incident demands that your organization temporarily relocate, this coverage may help pay for resulting costs, such as movers’ fees and additional rent.
How Long Can Business Interruption Insurance Provide Aid?
Business interruption insurance generally establishes a restoration period, which determines how long your organization can receive financial assistance through its policy following a covered incident. These benefits typically last 30 days but may be able to extend up to 12 months, depending on the policy. Additionally, these policies typically include a waiting period before your insurance begins to provide aid (e.g., 48 to 72 hours).
Get the Right Coverage
Even diligent businesses in low-risk industries may eventually face extended business interruptions that could impart significant financial losses. Many of these incidents may even be out of your control, meaning that damages and expenses could be inevitable. Given this harsh reality, your organization would be remiss not to secure adequate loss control measures.
At Stastny Insurance Agency, we are committed to helping businesses, families and individuals in the Baltimore area secure their financial wellness with suitable coverage solutions. Our agents have the knowledge and experience to understand your circumstances and compile optimal policies. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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