In New Jersey, $13,470,081,000 in commercial insurance claims were paid in 2019 alone. When you're a business owner, you have to be aware of all that could go wrong. Business interruption insurance will get you through a tough time by helping to pay expenses.
You can obtain quotes on affordable coverage through an independent insurance agent. They work on your behalf, saving you time. Connect with a local expert to get started today.
What Is Business Interruption Insurance?
Business interruption insurance in New Jersey will help keep your company operating. When a loss occurs that closes you down for an extended period, business interruption insurance will help foot the bill. It will cover your regular expenses so you can stay in business.
This coverage is also known as business income insurance because it will replace your income while you are shut down. This will help keep you operating even when you don't have cash flow coming in. Business interruption coverage is added to your general liability, business owners, or package policies for a premium.
What Does Business Interruption Insurance Cover?
Business interruption coverage has many facets. It can be used to help your business through a painful period when cashflow is void. Like your other business policies, this coverage is essential. 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 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
The cost of business interruption insurance in New Jersey will vary. Just like your other commercial insurance policies, the cost of coverage depends on a variety of factors. Things like personal data and outside elements will determine your premiums.
New Jersey natural disasters that will impact your premiums:
- Severe storms and lightning damage
- Flooding and water damage
- Hurricanes and tropical storms
- Heavy snow
- Burglary and other property crimes
While you won't know your business interruption insurance's exact pricing without a quote, you can be aware of things that affect it. Local crime and catastrophes are among the items that are outside of your control. Some personal data factors you will be able to improve over time for better pricing.
Business Interruption Insurance Exclusions
There are some exclusions to business interruption insurance. Like your other business policies, the carriers have guidelines that are followed. 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 that can be proven.
Those may or may not be excluded from your policy. The exact coverage will depend on what your carrier offers. Not all policies are created equal and should be review consistently.
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Indemnity Period for Business Interruption Insurance
In New Jersey, your business interruption insurance will be assigned a time limit. This time will start ticking once you've filed a claim and your coverage is released. Some policies will have a 60 to 90 day waiting period before coverage will kick in.
Typically, your business interruption coverage will last anywhere from 12 to 24 months. Some carriers only offer a 12-month option. This is known as the indemnity period and is basically how long your coverage lasts. Review your business insurance for accuracy.
Business Interruption Insurance Extra Expense
Your New Jersey business insurance policies will have several coverages worked into them. Business interruption insurance has an extra expense option. This endorsement will give you more specific coverage for a loss.
- Extra expense coverage option: This will pay for extra expenses outside of your regular business expenses that are caused by a covered claim
When you have to close your doors due to a loss, and there are more bills than usual, extra expense applies. This coverage is not always included, and it's not always an option. Check with your carrier aboutn policy specifics.
Small Business Interruption Insurance
New Jersey has 884,049 small businesses, and they employ 1,800,000 people. To say small businesses are the heartbeat of America wouldn't be far off. Your company may need commercial auto insurance, life insurance, and more.
If you're a small business owner, you'll want protection for all the what-ifs. Unfortunately, when a substantial loss or natural disaster takes out your operation for a time, you may not bounce back. Since most small business owners function on a lower cash flow, coverage is essential. You may not be able to financially sustain a claim and risk closure.
How to Connect with an Independent Agent in New Jersey
When you're searching for adequate protection for your New Jersey business, accuracy counts. There are many policies to choose from, and business interruption insurance is one of them. To ensure you are getting all the coverage you need, speak with a licensed professional.
An independent insurance agent can help find a policy that fits your budget. Since they do the shopping for you at zero cost, you'll save big-time. Connect with a local expert on TrustedChoice in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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