Kentucky had $4,661,744,000 commercial insurance claims paid in 2019 alone. If you own a business, you'll need to account for all risk exposures. Business interruption insurance will provide coverage when you need it the most.
Affordable insurance can be obtained through an independent insurance agent. They have access to multiple markets, giving you options. Connect with a local adviser for tailored quotes.
What Is Business Interruption Insurance?
When a claim occurs that puts your operation out of commission, business interruption insurance can help. It will pay for expenses while you get back on your feet. Without this policy, you may not come back from a loss.
When you don't have cash flow coming in due to a temporary closure, it can hit your finances hard. With business interruption insurance, you won't have to worry about regular expenses. This coverage can be known as business income insurance because it replaces your income for a period.
What Does Business Interruption Insurance Cover?
Your personal and commercial insurance policies will have an expiration date. Business interruption insurance usually lasts 12 to 24 months, depending on the carrier. It can even pay for additional expenses incurred 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
Your Kentucky business insurance costs will vary. Business interruption insurance is no different and dependent on a lot of moving parts. Carriers will use personal data and outside elements to determine your premiums.
Kentucky natural disasters that will impact your premiums
- Severe storms and lightning damage
- Flooding and water damage
- Burglary and other property crimes
You won't know the exact price of your business interruption insurance without a quote. Coverage will be added to your business owners policy, general liability, or package policy. To see how your rates are affected, consult with a professional.
Business Interruption Insurance Exclusions
Like your other business policies, there are exclusions. Business interruption insurance won't cover every loss and have specific parameters. 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.
Indemnity Period Business Interruption Insurance
Your Kentucky business interruption policy will have time constraints. This is known as the indemnity period. It applies to all business policies alike and gives a time limit on how long coverage will last.
Business interruption coverage will be offered for 12 to 24 months, depending on the carrier. You and your agent preselect this prior to taking out the policy. Though you'll have coverage for the allotted time period, you will only use it as long as necessary or until time runs out.
Business Interruption Insurance Extra Expense
Your Kentucky business interruption insurance has an extra expense option. This endorsement will give you more coverage for a loss. When additional expenses arise due to a claim, this coverage will apply.
- Extra expense coverage option: This will pay for extra expenses outside of your regular business expenses that are caused by a covered claim.
Extra expense is not always an option, but should be carefully considered. You never know what unexpected bills could come up when a loss occurs. Review your business policy limits to ensure you're fully covered.
Small Business Interruption Insurance
Kentucky has 351,260 small business owners with roughly 702,054 people that are employed by them. When a loss occurs that closes your doors, it puts your staff out of a job too.
Unfortunately, most small business owners won't have enough cash flow to keep their business running without income. This can lead to layoffs and permanent closure. To avoid this altogether, consider business interruption insurance.
How to Connect with an Independent Agent in Kentucky
If you're on the hunt for accurate and sufficient coverage in Kentucky, you might need some help. Business interruption insurance is just one of the coverages you'll need to be adequately insured. In order to protect your American dream, use a licensed adviser.
An independent insurance agent can quote your policies through multiple markets. This will give you the best coverage for an affordable price. Connect with a local expert on TrustedChoice.com in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
©2020, Consumer Agent Portal, LLC. All rights reserved.