If you're the owner of one of the 86,550 small businesses in South Dakota, you'll want adequate protection. There are several different policy options to choose from for your operation. Business interruption insurance can be helpful when you're trying to get the best coverage.
If you work with an independent insurance agent, you'll have access to multiple markets at once. They do the shopping for you so that you can save time. Connect with a local expert to get started.
What Is Business Interruption Insurance?
Will your South Dakota business be able to withstand a month of no income? How about a year or two? Fortunately, business interruption insurance can help.
- 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?
In South Dakota, the right commercial coverage can make or break your business. There are several options your company can choose from for protection. Take a look at what's typically covered under business interruption insurance:
- Income: This will be based on what would normally have 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, this coverage will help pay the bill.
- Loans: Any loan payments you have incurred are part of this regular expense.
Business Interruption Insurance Cost
Things like local weather, crime rate, loss history, and more will impact your insurance costs. Like any other policy you own, coverage will be unique, and so will your price. Check out which catastrophes are most common in South Dakota below.
South Dakota natural disasters that will impact your premiums:
- Severe storms and lightning damage
- Flooding and water damage
- Wildfires and residential fires
- Heavy snow
- Burglary and other property crimes
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Business Interruption Insurance Exclusions
Every carrier will have a list of items that your coverage won't insure. When it comes to your small business insurance, it's essential to know what isn't insured. Check out some standard exclusions that are usually not covered under your South Dakota business interruption:
- A pandemic: When a pandemic occurs, neither your business interruption nor any other commercial policies will provide coverage for a closure.
- 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 you can prove.
Indemnity Period for Business Interruption Insurance
Your South Dakota commercial insurance will have one of two ways it protects your business. One is a dollar amount it will go up to, and the second is a period of time. Business interruption coverage goes by an indemnity period.
- Indemnity period: The amount of time a select coverage will pay out a covered loss.
Business Interruption Insurance Extra Expense
In South Dakota, $2,227,477,000 in commercial insurance claims were paid in 2019 alone. If you have a loss that interrupts your operation, you could have some additional expenses. Your business interruption coverage will have a way to add protection for these extra costs.
- 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
South Dakota has 210,534 people employed by small businesses. When you own and operate a company with staff, they could be out of a job if you're not adequately insured. This not only will cost you good employees, but your business as well.
Most small business owners don't have enough money saved to sustain a closure. Even if you have to shut down temporarily due to a loss, you still need to have the cash flow to pay the bills. Fortunately, business interruption insurance can help make ends meet for 12 to 24 months.
How to Connect with an Independent Agent in South Dakota
The commercial protection for your South Dakota operation is important. If you're trying to go at it alone, you could be missing key coverages. Business interruption insurance can be discussed with a trusted adviser, among other policies.
An independent insurance agent has access to several carriers so that you have options. They work on your behalf at no additional cost. Connect with a local expert on TrustedChoice to save today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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