4 Things Business Interruption Insurance Covers After a Fire

1/7/2021 (Permalink)

Protect your investment against fire by acquiring business interruption

4 Things Business Interruption Insurance Covers After a Fire

When fire emergencies happen in commercial buildings, the cost of damage can be extensive. In addition to facing destroyed property and equipment, business owners must also deal with wage losses and ongoing rent costs. For this reason, many have business interruption insurance to protect their investment against fire damage. If you are unfamiliar with this kind of insurance, it can be a good idea to learn if you have it and what it covers before you need it. Often, it is part of your overall property insurance and includes:

1. Lost Sales and Revenues
One of the most financially difficult parts of a business fire is the loss of income that comes with the inability to work as normal. The good news is, most policies cover the period of time when business owners cannot make regular profits due to a fire.

2. Temporary Relocation
After a fire, professional fire damage restoration experts will have to assess, clean, reconstruct and repair your building. Since this process can take some time, it is common for business interruption insurance to cover costs associated with the temporary relocation of your business.

3. Ongoing Rent and Utility Costs
Rent does not stop just because you cannot use your commercial property while it undergoes fire cleaning. Along with relocation, this kind of insurance usually pays for ongoing rent and utility costs throughout the fire damage restoration process.

4. Other Reasonable Expenses
While most insurance policies offer similar types of coverage, the details are not always the same. Many policies will also cover other reasonable expenses related to a business fire, but the specifics of what your insurance company considers "reasonable" will depend on what your policy says.
In a nutshell, business interruption insurance covers the period of time when a fire causes financial interruptions for a business. If you have questions about what your policy covers, take some time to better familiarize yourself with what you have before an emergency happens. Preparing now can prevent stress later.