Business interruption insurance (also known as business income insurance) is a type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
“We recently had a client who had a flood at his business,” says John Sereno, Vice President Of Sales at CH Insurance. “The client has flood insurance and that covered other aspects of his business. But the revenue the business lost as a result of being shutdown was actually covered under his business income coverage (BIC),” says Sereno.
Commercial property insurance covering loss of income suffered by a business when damage to its premises by a covered cause of loss causes a slowdown or suspension of its operations. Coverage applies to loss suffered during the time required to repair or replace the damaged property. It may also be extended to apply to loss suffered after completion of repairs for a specified number of days. Business income coverage (BIC) is also referred to as business interruption coverage.
What is business interruption insurance?
What is extra expense coverage? Extra expense insurance is coverage that pays for a company's non-ordinary expenses after a disruptive incident. It provides cash to help you stay in business while your property is repaired or replaced.
Good insurance is a necessary cornerstone for operating a solid business. Knowing the right types of coverage to secure your business so you and your employees can sleep well at night is OUR business.
If you have any questions about your commercial insurance policy we are in your corner 24/7/365! Contact us through our website or call our Syracuse office at 315-234-7500.
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