Business interruption insurance is an amazing product for business owners and could prove detrimental or key to your businesses future. Business interruption insurance works in the following way:
Business interruption insurance covers profits that are lost and expenses that continue to be incurred when a company is forced to shut down by a disaster, or even by an event such as an extended power outage. Policies typically have a 48-hour waiting period before coverage starts, but, depending on how much coverage a business buys, interruptions up to 360 days can be covered. Among the expenses that business interruption insurance covers are salaries, rent and electricity — costs that businesses still need to pay although they may not be able to operate.
If you have a business and want to keep that business for the long term then purchasing a business interruption policy makes financial sense. There are also other types of related insurance such as extra expense, contingent business and boiler and machinery insurance. To learn more about business interruption and other similar coverage visit the Insurance Information Institute website.
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