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Fire & Water - Cleanup & Restoration

3 Pitfalls of Lacking Interruption Insurance

5/25/2021 (Permalink)

Visible damage to a commercial building following a structure fire Commercial fire damage in Charlotte Park, FL.

What Is A Risk Associated With Business Interruption

A business that is unprepared for the worst-case scenario may experience instability if an unforeseen event prevents operation for days or weeks at a time. While property insurance covers damage to a structure in Charlotte Park, FL, general commercial policies do not include interruption insurance. Here are three potential pitfalls that could be experienced by business owners lacking business interruption coverage.

1. Liability for Ongoing Expenses
An owner of a business who does not have interruption insurance may have to pay for ongoing expenses after a business fire. Meeting payroll, making lease payments or keeping the utilities on may cost thousands of dollars over one or more weeks of closure.

2. Revenue Loss During Closure
A business owner may also experience a partial or total loss of revenue during closure. If it is possible to operate out of an alternative location on a temporary basis, it may be possible to get around the need to make a business interruption claim. Otherwise, making an interruption claim can offset lost income.

3. No Recourse After Shutdowns
A business owner with interruption insurance can choose whether to make a claim. If the owner decides to do so in order to offset continuing expenses or lost revenue, these costs should be covered as soon as interruption insurance kicks in after the typical 48-hour waiting period. Business owners who lack this coverage have no option but to pay all costs above and beyond fire cleaning, which is covered property damage.
Business interruption coverage may be available as a rider or endorsement to a general commercial property insurance policy for a location in Charlotte Park, FL. If these options are not available, business owners can take out a separate policy. While interruption insurance raises the total cost of insuring a business, the peace of mind these policies provide in the event of a disaster is worth the expense.

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