Massachusetts Business Interruption Insurance
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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.
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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.
In Massachusetts, there are several policies that you'll need for your business. There are 669,224 small businesses in Massachusetts alone. When you're one of them, you'll want to be proactive with protection.
Fortunately, an independent insurance agent can help with coverage and premium options. They have multiple markets that they can quote your coverage through. Connect with a local expert for further details.
What Is Business Interruption Insurance?
If your Massachusetts business had to close down for a month, how would you pay the bills? Numerous risk factors could cause your operation to close its doors for a period of time. Take a look at how it works.
- Business interruption insurance: Pays for regular business expenses in the event of a covered loss. This keeps the operation active and helps avoid closure.
What Does Business Interruption Insurance Cover?
Your Massachusetts commercial insurance will have several instances where it could apply. Some essential areas in which business interruption coverage will kick in are natural disasters, catastrophes, and other covered perils. 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
In 2019, Massachusetts had $8,060,079,000 in commercial insurance claims paid. Things like local weather, crime rate, loss history, and more will impact your costs. While you can't know your exact pricing of business interruption coverage without getting quotes, you can be aware of what affects your premiums.
Here are the most common Massachusetts natural disasters that will impact your premiums:
- Severe storms and lightning damage
- Hurricanes and tropical storms
- Heavy snow
- Flooding and water damage
- Burglary and other property crimes
Business Interruption Insurance Exclusions
Every insurance policy will have exclusions. Your business interruption will not protect against a pandemic, among other things. Check out some standard exclusions that are usually not covered under your Massachusetts 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.
- Communicable disease: Business interruption is not covered in the event of a forced closure due to a communicable disease.
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Indemnity Period Business Interruption Insurance
Commercial insurance policies will either run by a set limit or indemnity period. Each is a measure of either funds or time. Business interruption coverage uses an indemnity period to cover a loss. It works like this.
- Indemnity period: The amount of time a select coverage will pay out a covered loss.
Business Interruption Insurance Extra Expense
If a claim happens, you won't know what additional expenses you'll incur. When your small business has to stop due to a covered loss, business interruption insurance will help. Extra expense coverage is an option that can give additional protection.
- 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
In Massachusetts, there are approximately 1,500,000 people employed by small businesses. Your employees will be impacted if your company halts. Business interruption insurance can help you meet payroll when you aren't able to operate.
Unfortunately, most small business owners won't have enough cash flow to keep their doors open. If you have to pay the bills without any money coming in, you may have to shut down for good. Business interruption coverage will cover expenses for 12 to 24 months, depending on your policy. There are many other employee-based policies such as workers' compensation insurance that can add to your coverage as well.
How to Connect with an Independent Agent in Massachusetts
In Massachusetts, your protection matters. Business interruption insurance is crucial for any operation. It can help save your company from permanent closure when a loss occurs.
An independent insurance agent has access to several carriers so that you can get an affordable policy. They do the shopping on your behalf for free, making it a no-brainer. Connect with a local expert on TrustedChoice.com and start saving today.