As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Written By Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Lead Editor, Insurance Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
| Lead Editor, Insurance
Updated: Jan 3, 2024, 1:13am
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While you might keep meticulous business records and have all the best business practices down to a T, there are certain circumstances beyond your control that could wreak financial havoc on your small business. Business interruption insurance can help protect your business financially if you are forced to close due to an unexpected problem covered by your policy.
For example, say a nasty storm knocks a tree into your building and you need to close for a week (or longer) for repairs. How would you replace your lost business income?
Fortunately, the best small business insurance plans have coverage for these types of situations. Here’s how to get business interruption insurance.
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Business interruption insurance helps to replace lost business income if you are unable to open your business on a temporary basis due to a loss covered by the policy, such as a fire or theft.
This coverage type is sometimes called “business income coverage.” It’s typically included as part of a business owners policy (BOP).
Business interruption insurance covers the operating expenses for a business due to a problem covered by the policy. The covered perils for business interruption insurance are generally theft, wind, fire, lightning and falling objects.
Covered operating expenses may include:
There are plenty of exclusions to a business interruption insurance policy, such as:
While business interruption insurance is a good option for most small business owners, it can be a crucial coverage type for businesses that rely on a physical location (like your building) or assets (like machinery or equipment) that could be affected by problems, such as fire, theft, wind, lighting and falling objects. This includes businesses, such as:
Every business interruption policy generally has a coverage limit. This is the maximum amount your insurance company will pay toward a business interruption claim. Choosing a good coverage amount is essential because you’ll have to absorb any financial losses above your coverage limit.
Consider these factors:
Look at your gross earnings and earnings projections as guidelines for the right amount of coverage. You want the insurance to cover the costs of operating expenses while repairs are being made to the business.
The cost for a business interruption insurance policy is based on a variety of factors such as your industry, the number of employees and the amount of coverage that you choose.
Costs can also vary based on your business location and your risk of making a claim.
A business interruption insurance policy costs between $40 and $130 per month, or $480 and $1,560 per year, according to Insureon.
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Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others make well-informed decisions.
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