Business insurance, which is also known as Business Interruption insurance or business income insurance, is one of the types of insurance which basically covers income which is lost by a business after a disaster. After a disaster, income is lost due to rebuilding the process or closing a facility & the cover for that is provided by the business interruption insurance.
This insurance is different from property insurance as business interruption insurance may cover the profits lost due to disaster along with the physical damage occurred to the business while the property insurance is restricted to physical damage cover only. You can hire knowledgeable and experienced Business Insurance agent via various online sources.
Business Interruption insurance policy typically covers the following:-
- Profits – On the basis of previous financial statements, an estimate of profits that would have been earned is calculated & covers for the same is provided accordingly.
- Fixed Costs – Based on the historical costs, fixed costs such as operating expenses & other costs that are still being incurred by the property are covered.
- Temporary Location – There are certain policies that provide coverage for the extra expenses for working from or moving to the temporary location.
- Commission & Training Cost – The Business interruption insurance policy covers the training providing cost to the users/operators of the machinery which is replaced by the insurance service provider following the insured events.
- Extra Expenses – The policy also reimburses for other reasonable expenses (other than the fixed costs) which are required for the business to continue its operation while the repair work on the property is going on.