How To Lower Business Interruption Insurance

12/14/2020 (Permalink)

Business interruption insurance

When your business suffers water damage from leaking pipes or flooding, it is more than likely that you will have to temporarily close your business operations while those repairs are made. In the event that your business in Hamilton, OH, is forced to close for repairs, business interruption insurance can help you stay afloat until restorations are complete.

What Business Interruption Insurance Covers

Business interruption insurance steps in to cover the cost of operating your business in the event of a shutdown due to covered reasons. When there is limited or no amount of money coming into the business, there are a number of expenditures that still need to be paid. Business interruption insurance can help with:

• Lost net income according to your financial records
• Employee payroll
• Loan payments
• Taxes
• Mortgage, rent, and lease payments

Business interruption insurance will not cover things like utilities, damaged property, damages covered by separate insurance like floods or earthquakes, or any lost income not documented in your financial records.

How To Lower Business Interruption Insurance Costs
The best way to keep costs low is to avoid the need to make any claims. Hire professionals to conduct regular scheduled inspections of the electrical and plumbing systems and to maintain their proper working order. Address every leaky or broken pipe as soon as it is discovered. Don't let an easily repaired leak become a large water damage claim. When damage does occur due to flooding, sewer backups, or burst pipes, work with restoration specialists to get your business back to safe conditions quickly. Clean, repair, replace, and restore everything as needed as quickly as possible.
The faster you can get your business up and running again, the lower your claim will be for business interruption insurance. To make a decision regarding the need for business interruption insurance, or the amount of it to purchase, consult your other existing policies. Check with your property insurance provider and your coverage regarding flooding and earthquakes.