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Fire & Water - Cleanup & Restoration

Is Your Business Protected From Disaster

12/1/2020 (Permalink)

Most business owners have insurance that covers damage to the property, structure, and its contents. However, when disaster strikes your Foxborough, MA commercial property the losses incurred may extend to revenue. According to the Insurance Information Institute many business owners fail to think about how they would keep their business afloat if they were forced to temporarily close. Business income (interruption) coverage also known as business income coverage (BI), can help with operating expenses during the period of restoration, and includes:

  1. Lost net income (based on financial records)
  2. Mortgage, rent and lease payments
  3. Loan payments
  4. Taxes
  5. Employee payroll

The III recommends that business owners should make sure the policy limits are sufficient to cover their company for more than a few days. After a major disaster, it can take more time than many people realize to get “back in business.”

Guidelines For Coverage

Generally, the best way to estimate future profits to determine the right amount of coverage is to use your business's gross earnings and projections. Remember, if business income interruption costs exceed the coverage limit chosen you will have to pay out of pocket for any extra expenses.

Extra Expense Insurance

Business income (interruption) insurance can also include extra expense, which will cover anything beyond the normal day-to-day operating expenses that are necessary to keep a business solvent. Instances of extra expenses include:

  • Renting a temporary place of business while the original place of business is being restored
  • Replacement of hardware, technology and furniture
  • Paying overtime for employees or hiring more employees
  • Leasing equipment

Extra expense insurance can be bundled in a Business Owner’s Policy (BOP), as a separate insurance policy or as a rider to a commercial property policy.

When disaster strikes your commercial property call the experts at SERVPRO of Foxborough at (508) 533-5305. We are "Faster to any size disaster".

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