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business interruption coverage

If you own a contracting business, it is essential to have business interruption coverage.  In the event of storms and equipment break downs, you may suffer from losses.  With business interruption coverage, you don’t have to lose money during your time of need.  Keep your business running and pay each and every one of your employees as if nothing ever happened!


Quick Facts about Business Interruption Coverage

  • 30 percent of businesses in the tri-state area have business interruption coverage
  • 10 percent have off-premises utility interruption
  • Most businesses that need business interruption coverage don’t have it

Understanding Business Interruption Coverage

Most people who have business interruption coverage insurance don’t actually understand what their policy covers.  As a contractor it is in your best interest to know what your policy covers.  The goal of Business Interruption Coverage is to cover losses in the event of disruptions to normal business operations.  It can be due to physical damage to equipment or property.  In order to safeguard your business, make a checklist of situations which could potentially occur and go over them with your insurance agent.


Asking the right questions

In order to get the right type of coverage make sure to discuss the following:

  • Can the business operate at a temporary location rather than suspend operations?
  • Could your client’s business be interrupted because of a loss at one of its suppliers?
  • What would happen if a key piece of machinery was damaged-how long would it take to get a replacement? What if the manufacturer is overseas?
  • Would the customer suffer a loss if one of its service providers (e.g., electrical, fuel, water, heat, refrigeration, communication, etc.), suffered a loss?
  • Is there a need for extra-expense insurance?
  • Are there any new state ordinance or law requirements or code upgrades that could delay the customer from getting back in business?

By asking the right questions and investigating current and future policy terms you can better protect your business. If you have any questions please don’t hesitate to contact one of our insurance professionals today.

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