How To Minimize Costs With Business Interruption Insurance
When an emergency situation such as flooding from a broken pipe or a natural disaster temporarily closes your business in Glendale, CO, business interruption insurance helps tide you over until you reopen. However, most insurance policies have specific qualifications. Understanding your policy and working with a professional restoration company will lower costs and efficiently get you back in business.
What Is Business Interruption Insurance?
Business interruption insurance, also known as business income coverage, helps cover operating expenses in the case of temporary closure. Policies generally assist with lost net income during the restoration period, as well as help pay for:
- Mortgage or rent
How Can You Lower Costs in the Case of Large Water Damage?
Knowing your policy’s limits and stipulations is key for saving your company time and money. Typically, the restoration period does not start until 48 to 72 hours after an emergency strikes your business. Standard policies limit the restoration period to 30 days, although you can extend this through an added endorsement.
Once you know how long you have to restore your property under your insurance policy, work with an efficient clean-up crew that can help you lower your costs by recovering the damage quickly. Communication with your coverage provider and your restoration company enables you to reopen your doors as soon as possible.
What Does Your Insurance Cover?
It’s also important to know what kind of disasters your insurance covers. Some policies will cover damage from flooding caused by a mechanical problem but won’t cover damage from a natural flood, as that is under different insurance.
Protect your business during the aftermath of a significant disaster like flooding from a burst pipe with a business interruption policy. Understanding how your policy works and working with an efficient team will lower your insurance costs and quickly get your business back on its feet.