Most business owners in Scottsdale, AZ, don’t anticipate having to close their companies due to unforeseen circumstances temporarily. However, unexpected events can occur, leading to a loss of income while the business remains closed. You may not realize that you can safeguard your company during such times with business interruption insurance from Homeowners Insurance Group.
Protecting Your Bottom Line
Business interruption insurance provides coverage for lost income, operating expenses, and additional costs that may arise when your business must close or temporarily relocate due to a covered event, such as a fire, severe storm, or other specified incidents. This insurance also covers expenses if a governmental authority restricts access to your business premises due to damage to property near your location. Coverage includes compensation for lost profits, mortgage or rent payments, and other financial obligations to help restore your company to its pre-loss financial condition. Commercial property insurance often includes this as a provision, and many business owners’ policies (BOPs) bundle it within their coverage.
Common Provisions
Business interruption insurance can be the deciding factor between continuing operations or losing your business. Here’s what it typically covers:
- Lost net income
- Operating expenses, such as payroll, rent, mortgage, and loan payments
- Rent for temporary workspaces
- Funds for acquiring new equipment
- Relocation costs
- Taxes and advertising expenses
You can enhance your coverage with several endorsements, including contingent business interruption (coverage for interruptions caused by a supplier), extended business interruption (coverage beyond the usual period), and coverage for non-operational utilities.
What Is Not Covered
Business insurance policies typically exclude the following:
- Flood and earthquake damage
- Pandemics or communicable diseases
- Undocumented income
- Broken items caused by a covered event
Gain a deeper understanding of business interruption insurance by discussing your needs with Homeowners Insurance Group, serving Scottsdale, AZ. Contact our office today to schedule an appointment with one of our agents.
