If you're a business owner, you'll want protection for your assets and cash flow. In South Carolina, $5,928,911,000 in commercial insurance claims were paid in 2019 alone. Business interruption insurance can save your company from closure.
Fortunately, an independent insurance agent can help with policy and premium options. Since they do the shopping at no cost, you'll save money. Connect with a local expert to get quotes.
What Is Business Interruption Insurance?
If you have a loss in South Carolina that impacts your operations, business interruption insurance can help. Typically, this coverage is included in your general liability, package, or business owners policies. If a loss occurs that shuts you down, you'll still have bills to pay.
Often referred to as business income insurance, business interruption insurance will help keep the lights on. It pays for your regular expenses when you're closed due to a covered loss. It will supplement your income as well, so you have cash flow coming in.
What Does Business Interruption Insurance Cover?
When your company is temporarily closed, business interruption insurance will take care of many bills. Like your other business policies, it will usually kick in once a claim gets approved, depending on the carrier. 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 your South Carolina business interruption insurance will depend on various items. Things like personal data and outside factors will play a role in your pricing. To get exact premiums, obtain quotes.
South Carolina natural disasters that will impact your premiums:
- Hurricanes and tropical storms
- Ice storms and freezing
- Burglary and other property crimes
- Wildfires and residential fires
- Flooding and water damage
Until you get specific quotes for your business insurance, you won't know how much it will cost you. However, you can be aware of what affects your premiums. Local crime, weather, insurance scores, past claims, and more can all impact your insurance.
Business Interruption Insurance Exclusions
Each state is different when it comes to your business insurance. Every carrier will offer its own flavor of coverage. Your South Carolina business interruption insurance will have guidelines that vary. 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, business 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.
Since not all policies are the same, you will have to research what your carrier says about exclusions. For the most part, the above are pretty usual when it comes to business interruption coverage. To be sure, consult with a licensed professional.
Indemnity Period for Business Interruption Insurance
South Carolina business interruption insurance will have an expiration date. All business policy coverages will be given a limit or an indemnity period. Your business interruption insurance will last for a set time.
Usually, your policy will allow for 1 to 2 years of business interruption coverage when a loss occurs. Some guidelines give a waiting period in the on-set of 60 to 90 days. Once that time limit is up, you will have to start paying for your own business expenses.
Business Interruption Insurance Extra Expense
In South Carolina, your business interruption insurance may have an option to add coverage. Extra expense is a common endorsement that will help pay for a loss. It is attached to your interruption coverage and gives an additional layer of protection.
- Extra expense coverage option: This will pay for extra expenses outside your regular business expenses that are caused by a covered claim
When you're forced to shut your doors temporarily, there may be more unusual expenses. Any extra costs that are incurred resulting from a covered claim will be accounted for under this endorsement. Not all policies allow this coverage, so review beforehand.
Small Business Interruption Insurance
South Carolina has 418,031 small businesses that employ 794,711 people. Your coverage is more critical than ever. Business insurance for your company can range from commercial auto coverage to employee benefits insurance.
For most small business owners, a large claim could wipe them out completely. This is simply because the cash flow for an extended period isn't there. A way around this issue is to obtain business interruption insurance.
How to Connect with an Independent Agent in South Carolina
Your company grows by money coming in, but what if your cash flow came to a halt? Many businesses would not survive a substantial loss that impacted their operations. To ensure you have the right coverage, check out business interruption insurance.
An independent insurance agent can help find a policy that fits your budget. They have access to several markets, giving you options. Connect with a local expert on TrustedChoce to start saving.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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