Interruption Insurance for Your Small Business

Many small business owners do not realize the value of business interruption insurance. If a business is forced to close, it can suffer significantly, losing both customers and revenue. For any number of reasons, such as a power failure, a fire at a neighboring business, nearby brush or wildfires

Typically, this type of insurance is part of a package, or is added when purchasing property insurance. A business owner will be covered for income he or she would have earned during the time they're unable to conduct business. This is based on the financial records of the company. The policy will also cover expenses the business has still to pay, such as the phone or electric bill, even though it cannot yet resume normal operations.

As is the case with most types of insurance, there is a catch. Not unlike a deductible, there may be a waiting period of 48 hours before business interruption insurance begins payment. It is still, however, worth inquiring about unless you can move your operations to another location entirely. In such a case you might consider added expense insurance.