In Indiana, $6,780,466,000 in commercial insurance claims were paid in 2019. You'll need to account for many exposures when you own a company. Business interruption insurance can help ensure you stay open.
An independent insurance agent will be able to find coverage for an affordable price. They have access to several markets so that you get the best deal in town. Connect with a local expert for tailored quotes.
What Is Business Interruption Insurance?
Business interruption insurance in Indiana can help pay to keep your operation running. Many things could cause a temporary shutdown of your business. This policy will keep your business from having a significant setback or worse.
This coverage is also called business income insurance. It will protect your income when a covered claim forces operations to halt. Business interruption will pay for regular business expenses when you don't have money coming in.
What Does Business Interruption Insurance Cover?
Each commercial insurance policy will cover different things. In most cases, business interruption insurance will provide coverage for 12 to 24 months. It may even pay for additional expenses that you incur due to a loss. 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
Like any commercial policies you obtain, the cost will vary. Business interruption insurance is included in your general liability or package insurance. The premiums will vary depending on several risk factors looked at by the carriers. Weather and natural disasters are among them. Exact pricing can be determined by getting multiple quotes.
Indiana natural disasters that will impact your premiums:
- Severe storms and lightning damage
- Flooding and water damage
- Heavy snow
- Burglary and other property crimes
Business Interruption Insurance Exclusions
Your small business insurance will have exclusions. Indiana business interruption coverage is no different. Check out some standard exclusions that are usually not covered under your business interruption insurance:
- 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.
Indemnity Period for Business Interruption Insurance
In Indiana, each of your business policies will have an indemnity period. This is the limit of time a claim will pay out for a loss. It's the same for business interruption insurance.
Your business interruption coverage will typically last for a period of 1 to 2 years. Even though there will be a specific limit of time you can use, the policy won't pay out additional funds once you're back up and running. You can preselect the indemnity period with a licensed adviser.
Business Interruption Insurance Extra Expense
Most Indiana general liability, package, or business owners policies will have an option for extra expense. This coverage is attached to your business interruption limit. It is a more comprehensive offering to cover all the what-ifs.
- Extra expense coverage option: This will pay for extra expenses outside of your regular business expenses that are caused by a covered claim.
Small Business Interruption Insurance
Indiana has roughly 512,348 businesses. Small companies employ about 1,200,000 people. If a claim occurs that shuts you down, your staff will be out of a job, too.
Unfortunately, the majority of small businesses run on a tight cash flow. This leaves little room for a major setback. Business interruption insurance can help keep your doors open and your employees paid through a loss.
How to Connect with an Independent Agent in Indiana
If you're on the hunt for Indiana commercial insurance, a trusted adviser can help. When it comes to running a smooth operation, you'll want to obtain proactive coverage. Adequate business interruption insurance can help your company through a tough time.
An independent insurance agent has access to several markets so that you have options. They can find affordable coverage that protects your bottom line. Connect with a local expert on TrustedChoice for quotes today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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