The ABCs of Business Interruption Insurance

Your Monroe, CT area business depends on constant cash flow to thrive. When you can’t work, nothing comes in. However, you’re still responsible for bills, payroll, and other regular expenses. Without a backup plan, you could quickly find yourself struggling to keep your doors open. A business interruption insurance policy from Fida Insurance Group can provide help during times when you can’t produce income from your business ventures.

As part of your comprehensive business-coverage, interruption insurance gives you extra cash when your business needs to close due to a covered event. While every contract is unique, your business interruption policy generally covers:

  • Lost profits. Based on historical earnings, your policy pays out a portion of the profits you would have earned if the covered event had not occurred.
  • Fixed costs. Your normal business expenses are included in this calculation. This can include normal operating expenses like utility payments, payroll checks, rent, and even insurance premiums.
  • Temporary relocation. If you need to move your operations to a temporary location while your primary space is repaired, business interruption coverage helps defray your cots.
  • New equipment purchase and training. When your equipment is destroyed, your policy will help pay for replacements. You can also use the funds to train your workers on the new equipment.
  • Taxes and loan payments. Regardless of how your business does, you’ll still have to pay certain taxes and bank loan obligations. These policies provide funds for these essential charges.

As a part of your comprehensive business owner’s policy, your business interruption coverage is triggered by the occurrence of a specifically covered event. Talk to the experts at Fida Insurance Group to learn which perils you can gain coverage for and how this policy addition can provide long-term protection for your Monroe, CT area business.