When you own a business in Arizona, adequate protection is necessary. In 2019, Arizona had $6,937,130,000 in commercial insurance claims alone. If you want to avoid a major financial setback, consider business interruption insurance.
An independent insurance agent can help with coverage and policy options. They have access to multiple carriers so that you can get an affordable policy. Connect with a local expert in minutes to start saving.
What Is Business Interruption Insurance?
Business interruption insurance in Arizona is added to your general liability or package policies. Coverage is not automatic and would have to be endorsed in most cases. This policy will protect your bottom line from a financial disaster.
Insurance is often referred to as business income coverage. It will protect your income from a covered loss. When expenses pile up due to no money coming in, business interruption will foot the bill.
What Does Business Interruption Insurance Cover?
Your commercial policies will insure for various things. Business interruption insurance will help your operation get through one of the most challenging times. Take a look at what's typically covered under business interruption insurance.
- Income: This will be based on what your business would normally have come in historically during the same time.
- Payroll: Any payroll you usually pay will be taken care of under this coverage.
- Taxes: If your loss occurs during tax season, you'll have coverage for business taxes due.
- Rent or mortgage: If the building you occupy is unusable, the rent or mortgage will be paid by this coverage.
- Relocation: If you have to move to a temporary location, business interruption will help pay the bill.
- Loans: Any loan payments you have incurred are part of this regular expense.
Business Interruption Insurance Cost
Small business insurance costs in Arizona will range. Carriers look at numerous items when rating your policy from weather patterns to past losses incurred. Insurance companies will use your personal data and outside factors to set a premium.
Arizona natural disasters that will impact your premiums
- Flooding and water damage
- Severe storms and lightning damage
- Burglary and other property crimes
- Hurricanes and tropical storms
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Business Interruption Insurance Exclusions
Like any Arizona business insurance policy, there will be exclusions. This is to protect the carrier from going bankrupt. If they covered everything, they wouldn't have enough money in their reserves. Check out some standard exclusions that are usually not covered under your business interruption.
- Flood insurance: If you don't currently have a flood insurance policy, you won't have coverage for flooding under your business interruption coverage.
- Earthquake insurance: If you don't have earthquake insurance before your business is compromised, interruption coverage won't cover damage for this.
- Undocumented income: If your business is used to dealing only in cash with no paper trail, business interruption coverage will only apply to expenses they can prove.
Small Business Interruption Insurance
In Arizona, there are approximately 571,495 small businesses. Each one should have business interruption coverage to be adequately protected. With over 1,000,000 people employed by these small businesses, the right insurance is necessary.
Most small business owners won't have enough cash flow to cover a large loss. When your operation gets shut down temporarily, you might not be able to keep it running and payrolls flowing. Business interruption insurance can help cover this gap.
Indemnity Period Business Interruption Insurance
All your Arizona business insurance policies will have an indemnity period or limit of coverage. This will set a time limit or preselected coverage amount for each loss. Every claim will have a time frame in which you can report a loss as well.
If you don't use all the time allotted because you're back in operation, coverage won't overpay. Business interruption insurance will have an indemnity period of 1 to 2 years. The amount will depend on what the carrier offers.
Business Interruption Insurance Extra Expense
Extra expense coverage is an option in your business interruption insurance. Not every general liability, package, or business owners policy will offer this, however. To be sure you have proper protection, review your policies carefully.
- Extra expense coverage option: This will pay for additional expenses outside of your regular business expenses caused by a covered claim.
How to Connect with an Independent Agent in Arizona
When you're searching for the best commercial insurance in Arizona, use a professional. Insurance can be confusing when you're not a licensed agent. Business interruption coverage can be reviewed for free with a trained adviser.
An independent insurance agent will help quote through their many carrier offerings. This will save you premium dollars and give you coverage options. Connect with a local expert on TrustedChoice.com for details.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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