Business Interruption Insurance

Coverage to protect the business’ income while the premises are being restored to pre-loss conditions.

Many times, after a claim, a business starts to have additional expenses that come up. Items like renting an additional facility to continue to operate, renting equipment to temporarily replace damaged items, additional utility bills, and additional advertising costs to let the public know about the changes, among other things, cause a business to have extra expenses.

Important for our manufacturing customers, this coverage helps protect against supply chain disruptions but typically requires a direct physical loss to the supplier for coverage to apply.  Ask yourself – if a supplier goes down, would it cause you to shut down, or partially shut down and cause a financial loss? If so, do you want to have a discussion on contingent business income?

This is business income coverage against the loss of utilities to your property. Should you lose your power supply, water supply, or other important utility, coverage would kick into your lost income due to lack of utility supply to your building.

Deductible options for business income coverage plans differ from a standard property coverage item. Typically, business income coverage forms use a time deductible. 24 hours and 72 hours are very common. After the time elapses, coverage would kick in.

The standard restoration period is 30 days, but most policies can be endorsed for 180 or 360 days, which we recommend.

There is no set figure to describe, but there are rating factors that affect premiums.
• Coverage limits – How much coverage is needed?
• Claims history – The number of claims you’ve had in a 5-year period could affect your pricing.
• Sales – Annual sales are a common rating factor.
• Location – Where you’re located can be a rating factor used.
• Industry– your business type is the largest pricing factor outside of the insurance limit.