Missouri 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.
Missouri has about 532,277 small businesses. When you operate a company, you'll want adequate limits of protection. Business interruption insurance can help avoid a huge loss.
If you work with an independent insurance agent, you'll have access to multiple carriers. This gives you options on coverage and premiums. Connect with a local expert to start saving today.
What Is Business Interruption Insurance?
Your business will need many insurance policies. Missouri has various coverage options to offer for any company. One that should be seriously considered is business interruption insurance.
- Business interruption insurance: Pays for regular business expenses if your business must close its doors for some time after a covered loss. This keeps the operation active and helps avoid permanent closure.
What Does Business Interruption Insurance Cover?
In Missouri, your commercial policies will be tailored to your industry. Business interruption insurance can be added to any general liability or package policy. Take a look at what's typically covered under business interruption insurance:
- Income: This will be based on what would normally come in to your business 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
The cost of any commercial insurance policy will vary. Coverage and premiums depend on personal data and outside factors. Things like local weather, the crime rate, your loss history, and more will impact your costs.
Missouri natural disasters that will impact your premiums:
- Severe storms and lightning damage
- Flooding and water damage
- Severe ice storms and freezing
- Burglary and other property crimes
- Tornadoes
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Business Interruption Insurance Exclusions
Every small business policy will have exclusions. Each carrier will have a list of items that your coverage won't insure. Check out some standard exclusions that are usually not covered under your Missouri 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
Every business insurance policy will have its limits. These are coverage amounts or indemnity periods. In most cases, business interruption insurance is based on an indemnity period instead of a coverage amount.
- Indemnity period: The length of time a select coverage will pay out for a covered loss.
Business Interruption Insurance Extra Expense
In Missouri, $7,615,718,000 in commercial insurance claims paid were paid in 2019 alone. When a loss occurs, you won't know what additional expenses you'll incur. If your operation has to halt, business interruption insurance will help. Extra expense coverage is an option that can be added for more 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 Businesses and Interruption Insurance
Missouri has roughly 1,200,000 people employed by small businesses. When a major loss happens, it's likely you won't be able to stay afloat. Your staff will bear the brunt of this loss when you can't pay them.
Unfortunately, most small businesses operate on a tight budget. This leaves little room for cash flow. When you don't have a lot of extra reserves, you can be at risk. Business interruption insurance is worth the premium for the hassle it will save you.
How to Connect with an Independent Agent in Missouri
If you're looking for the best commercial insurance in Missouri, a local adviser can help. Business interruption coverage is essential for any operation. Review your policies with a trained professional for accuracy.
An independent insurance agent will have access to multiple markets so that you have options. They do the work on your behalf, saving you time and premium dollars. Connect with an expert on TrustedChoice in minutes.