Is Business Interruption Covered in Basic Commercial Policy?

Your business must account for many types of unexpected and unfortunate situations. Regardless of your commitment to safety and risk management, many accidents and other incidents may be beyond your control. These incidents can have direct impacts, such as property damage, lawsuits and employee injuries, but you may also need to consider losses arising from how they may disrupt your operations. Understanding business interruption coverage is critical.

What is Business Interruption Insurance?

In many cases, incidents affecting your business may have short- and long-term financial implications. For example, if a fire damages your company’s building, your commercial property insurance could help pay for repairing, rebuilding and restoring it. However, such policies typically cannot compensate you for expenses and losses while your building remains uninhabitable. Fortunately, business interruption insurance, also known as business income insurance, can help with the following:

• Lost income

• Employee payroll

• Taxes

• Loan payments

• Rent and mortgage payments

• Temporary relocation costs

• Training expenses related to new equipment

Is Coverage Included in Commercial Insurance?

Commercial insurance typically refers to a collection of policies woven together to form a sufficient financial safety net and ensure legal compliance. Business interruption insurance is among the most common staples of companies’ overall coverage portfolio. Coverage can often be retained through the following means:

• As a standalone business interruption insurance policy

• As an endorsement added to a commercial property insurance policy

• As part of a business owners policy

We’re Here to Help

At AIC Insurance Agency - Medford in Medford, Oregon, our team is dedicated to helping businesses understand and address their coverage needs. Contact us today to learn more about business interruption insurance or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.