The Show Must Go On ...

If there is a fire, property insurance policies do not cover loss of business income. While your building and equipment are being repaired or replaced, you still need a steady cash flow to meet expenses such as mortgages, taxes, salaries, utilities, etc.

Without business interruption insurance, both your business and personal savings may be stretched to the limit so you can stay in operation.

What does business interruption insurance cover?

• Net income that would have been earned before taxes, plus continuing operating expenses.
• Ordinary payroll for non-management employees is typically insured as a separate option.
• The period of loss is limited to the length of time necessary to repair or replace damaged or destroyed property.
• You can also get coverage for lost income for a period following the resumption of operations, until your business returns to normal.

Who needs this coverage?

• Unless your business is so portable that you can be back up and running immediately following a property loss, then you need Business Interruption coverage.
• Particularly businesses that must invest in buildings, equipment, stock and inventory.
• If you conduct business in a very competitive industry, where customers and suppliers could be lost within a short period of time, Business Interruption Insurance is essential.
• Manufacturers, retailers, contractors, and transportation & warehouse firms should not be without this coverage.

For more information, contact us.