HAVE YOU REVIEWED YOUR BUSINESS INTERRUPTION POLICY?

Business Interruption (BI) insurance makes sense. Consider Allison Dorst, a New Jersey resident who operates three e-commerce web sites selling sportswear. Last fall, Superstorm Sandy brought a prolonged power failure that shut down Dorst's customer-service lines, causing sales to evaporate. She'll also see lower sales because of a month-long delay in the delivery of next season's styles. Fortunately, her Business Interruption coverage will reimburse the profits lost because of this lost revenue.

Although most middle-market business owners and managers understand the need for BI, they don't always have the information they need to choose the right coverage. Some companies don't have enough insurance to remain in business after they suffer a major loss, while other businesses might be buying more coverage than they need. When it comes time to renew your BI insurance, be sure to take a close look at the insured or reported values for the policy, as well as on the various coverage extensions that apply to your business, based on its operations. It also makes sense to consider additional coverages such as:

  • Contingent Business Interruption
  • Claim preparation fees
  • Extended period of indemnity
  • Expediting expense
  • Service interruption/power outage, including overhead transmission and off-premises lines
  • Extra expenses
  • Ordinary payroll coverage
  • Selling price of finished goods inventory
  • Ingress/egress
  • Loss of attraction
  • Civil authority
  • Sue and labor

We'd be happy to offer our advice, free of charge, in selecting the amount and types of coverage that can minimize your financial risk and keep you in business after disaster strikes. Feel free to get in touch with us at any time.

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Further Reading
For many organizations, the loss of income coupled with continuing expenses after a fire or other disaster can be even more devastating than the damage itself. To increase the chances that a loss will not shut operations down permanently, organizati...
Do you have the information you need to make an informed decision on buying Business Interruption (BI) insurance? Unfortunately, some companies only discover that they don't have enough BI coverage to stay in business after they suffer a major loss....
Do you have the information you need to make an informed decision on buying Business Interruption (BI) insurance? Unfortunately, some companies only discover that they don't have enough BI coverage to stay in business after they suffer a major loss....
Business Interruption insurance is like Disability insurance for a business. Disability insurance covers some of a person’s lost income when they’re sick and unable to work. Business Interruption insurance covers a business’s lost income when a fire,...
Business interruption insurance serves a valuable purpose for your company. It replaces lost income and pays extra expenses if a covered peril disrupts your business. Consider several factors as you evaluate business interruption insurance for your c...