Even the most well-thought-out marketing plan can’t protect you from every possible situation that could interrupt your business. After all, if your equipment stops working, an act of nature takes away your electricity, or a hacker ties up your website, there isn’t a lot you can do to create an immediate work-around that ensures that your business avoids interruption.
What is Business Interruption Insurance?
The interruption of your ability to do business—through no fault of your own—does nothing to remove the need you have for the income your business brings in, however; nor will it remove your responsibility to pay the normal operational expenses that your business incurs. Business interruption insurance, a type of coverage generally available as part of a property insurance policy, helps to protect you from the resulting financial fallout caused by listed perils or insurable incidents.
What does it Cover?
Every policy will have its own listed perils and exclusions, though interruptions caused by thefts, fires, or other catastrophes are generally included. While some policies might provide protection from hackers that make your business systems unusable, others might exclude that coverage. Still other policies might consider an accident or injury to the business owner to be an insurable interruption.
Making Claims
Generally, when claims are made, the insurer looks at your financial records for the past few years to determine what your losses are due to the current interruption and the benefit pays all or a portion of those estimated losses as well as operating expenses during the time of business interruption. Some policies may also pay for the substitution expenses that arise from temporarily conducting business in another location.
No matter what your policy considers an insured peril, it’s important to have financial records available in a safe location should you need to submit a claim. Because you need to prove the amount of your losses, having financial data backed up so that you can still access it after an insurable incident, is vital.
Check with All About Insurance for information on your Dallas Business Insurance today!