Florida Business Interruption Insurance

When to look for an independent agent

Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Florida Business Interruption Insurance

Florida had $36,870,506,000 commercial insurance claims paid in 2019. If you own a business here, the right coverage is necessary. Business interruption insurance can be easily overlooked but shouldn't be.

An independent insurance agent can help find a policy that suits your needs. They work on your behalf at no cost, saving you time and premium dollars. Connect with a local adviser to get quotes today.

What Is Business Interruption Insurance? 

This coverage is also known as business income insurance. It will help replace your income and other expenses during a loss. Business interruption insurance for your Florida business could mean the difference in closing for good or not. 

It will provide cash flow when your company isn't pulling any money in. All of your regular costs will be accounted for and paid while the claim is being handled. Business interruption is added to your package, general liability, or business owners policy. 

What Does Business Interruption Insurance Cover?

When a loss takes down your Florida business, the most important thing is to get back up and running. With business interruption insurance, you can pay the bills while you're temporarily closed. Take a look at what's typically covered under business interruption insurance.

  • Income: This will be based on what your business would normally have coming in historically during the same time. 
  • Payroll: Any payroll you usually have 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

Your insurance costs will vary no matter where you live. In Florida, business interruption insurance will be based on various risk exposures. Carriers look at everything that could cause a claim and rate accordingly.

Florida natural disasters that will impact your premiums

  1. Wildfires
  2. Hurricanes and tropical storms
  3. Severe storms and lightning
  4. Flooding and water damage
  5. Burglary and other property crimes

You won't know the exact costs of your insurance without getting a quote. Several factors impact your rates. From local weather to crime, your business interruption coverage will be different from anyone else. 

Business Interruption Insurance Exclusions

Your Florida business interruption insurance will be met with exclusions. Just like there are items it will cover, there are things it won't as well. Check out some standard exclusions that are usually not included.

  • 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. 

To know which exclusions apply to your business interruption coverage, review your insurance. No two carriers are the same and neither is your coverage. Check out your policy offerings to know your responsibility when a claim occurs.

Indemnity Period Business Interruption Insurance

Every policy coverage will have an indemnity period or limit amount. From life insurance to commercial umbrella insurance, your policies will have an expiration date. Business interruption coverage is no different.

Your business interruption insurance in Florida will have a period of 12 to 24 months that coverage can be used. This time is known as the indemnity period. You will have insurance until this time has ended or when your company is operational, whichever comes first.


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Business Interruption Insurance Extra Expense

Extra expense coverage can be added to your business interruption insurance. It will supply an additional limit of protection for a loss. Your regular bills may change during this time, and this endorsement can help. 

  • Extra expense coverage option: This will pay for extra expenses outside of your regular business expenses that are caused by a covered claim.

It will help your Florida business insurance pay for expenses arising out of a claim. Some carriers may not have this as an option. Review your policy to ensure that you're adequately protected.

Small Business Interruption Insurance

There are 2,500,000 small business owners residing in Florida employing over 3,400,000 people. Your business will need protection for all the what-ifs.

From commercial auto insurance to coverage for your equipment, there are options for just about everything. Unfortunately, not all business owners have the cash flow to keep their business running when a loss occurs. Business interruption insurance can help your company stay afloat during a claim.

How to Connect with an Independent Agent in Florida

In Florida, not all business insurance is created equal. To have proper protection, you'll need to do a hard review of your exposures. Business interruption insurance is not one you'll want to miss. 

An independent insurance agent can help you find a policy that fits your budget. Since they have access to multiple markets, you'll save big. Connect with a local expert on TrustedChoice.com in minutes. 

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