Other Business Solutions
What is Business Interruption Insurance?
What does Business Interruption Insurance cover?
- Loss of revenue: Revenue you would have made if your business was open.
- Mortgage, rent and lease payments: For the space your business operates from.
- Loan payments: Such payments that you need to make in those period.
- Taxes: Regardless of the frequency you pay.
- Payroll for your employees: Salaries of your workers in those period should they cannot work.
- Relocation costs: Costs of moving to new or temporary location because of physical damages.
- Extra expenses: Costs such as renting another place to run your business after a covered loss.
- Training costs: Costs of teaching new employees how to use new machineries and equipments after a covered loss.
How important is Business Interruption Insurance?
Expect the unexpected. You never know when an accidental damage can cause your business to be unoperational, yet it is not a policy that is generally prioritized. BI is often overlooked due to business’ tendencies to take interests in protecting contents and properties, yet in reality there are other costs that can continue to incur when those aforementioned assets get damaged. Ultimately, this could be the difference between survival and closure.
Who needs Business Interruption Insurance?
How much does a Business Interruption policy cost?
Generally, the factors that insurers take into account when determining the price of a BI policy are as follows:
- Gross Profit or annual revenue
- Maximum Indemnity period under the policy
- Potential factors that may cause accidental damage
We can utilize our deep expertise from a wide range of industries in providing guiddance and recommendations on not only optimum and cost-effective limits, but also potential pitfalls that may impact your business, including the ways to avoid underinsurance problems.