What business interruption insurance can do for you.
If you run a small business, then you know how important it is to have the right
commercial insurance in Los Angeles, California. While you probably have the right general liability, commercial property, and commercial auto coverages in place, what about business interruption insurance? If you don't have this essential coverage, then your business risks a temporary closure becoming a permanent one. Curious to learn more about this coverage? Then
here's what you need to know about business interruption insurance.
- What is Business Interruption Insurance?
Business interruption insurance covers a portion of a business's lost revenue if it is forced to shut its doors temporarily. In addition to paying a portion of this lost capital, business interruption insurance also offers businesses financial support to pay for the recurring expenses that they are responsible for. For instance, this type of insurance can help you cover your business's rent, utility bills, and employee paychecks.
- When Does This Insurance Kick In?
Business interruption insurance coverage kicks in whenever a covered peril causes damage to your business's physical building or the supplies and equipment that is necessary to complete normal operations. Common business interruption situations include fire, flood, vandalism, theft, extreme weather events, and so on.
- Is This Coverage Mandatory?
While business interruption insurance is highly recommended, it is not legally required. However, keep in mind that failing to secure this protection could leave your business vulnerable. If you do not have enough money saved to cover the cost of a business interruption, then a temporary closure could become a permanent one. Securing the right business interruption insurance ensures that this scenario does not become a reality for your company.
- How Much Does This Insurance Cost?
The cost of business interruption insurance will depend on the nature and location of your business. For instance, if your business often works with fire or dangerous substances, then this increases your business's risk for damage. Because your risk for business interruption is higher, you would have higher insurance costs. Similarly, if your business is located in an area that experiences major storms or high fire risk, then your insurance rates will also be on the higher end.
This is what you need to know about business interruption insurance. Do you have additional questions regarding your
commercial insurance in Los Angeles, California? If so, then contact the experts at Fuller Insurance Agency in Southern California. Our team is ready to assist you with all your coverage needs today.
