Tennessee has roughly 603,310 small businesses in operation. When you run a company, the proper protection is necessary. Business interruption insurance could make or break your livelihood.
Fortunately, an independent insurance agent can help with policy and premium options. They have several carriers to choose from so that you can save. Connect with a local expert for custom quotes.
What Is Business Interruption Insurance?
Your Tennessee business policies are essential to being financially secure. Many coverages can help your company stay protected from a potential loss. Check out business interruption insurance.
- 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 2019, Tennessee had $6,317,565,000 in commercial insurance claims paid alone. Your general liability policy will have an opportunity to add business interruption coverage. 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
Your commercial insurance policy premiums will vary depending on a variety of risk factors. Carriers look at personal data and outside elements when rating your coverage. Items like local weather, crime rate, loss history, and more will impact your costs.
Tennessee natural disasters that will impact your premiums
- Severe storms and lightning damage
- Flooding and water damage
- Burglary and other property crimes
Business Interruption Insurance Exclusions
Every commercial insurance policy has items it won't cover. Your business interruption insurance is no different. Check out some standard exclusions that are usually not covered under your Tennessee 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 the 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.
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Indemnity Period Business Interruption Insurance
In Tennessee, commercial insurance will have limits or indemnity periods. Your policy will either insure up to a specific amount of coverage or for a particular time. In most cases, business interruption insurance goes by an indemnity period instead of a coverage amount.
- Indemnity period: The amount of time a select coverage will pay out a covered loss. Business interruption insurance will usually cover 12 to 24 months of expenses. Once this time is reached, you'll be responsible for the remainder.
Business Interruption Insurance Extra Expense
When a loss occurs in Tennessee, you won't know what additional expenses could arise. In addition to your regular business costs, you may have other bills that come up associated with the claim. Extra expense coverage can be added to your business insurance policy.
- Extra expense coverage option: This will pay for additional expenses outside of your regular business expenses that are caused by a covered claim.
Small Business Interruption Insurance
Tennessee has approximately 1,100,000 people working for small businesses. If your operation has to close its doors for a time due to a catastrophe, your employees will experience loss as well. When you obtain the right coverage, it will insure all areas of your business, including payroll.
Most small business owners won't have the adequate cash flow to float their expenses for months on end. When you run out of money, you could have permanent closure. Business interruption coverage will foot the bill for you, so you don't have to give up your American dream.
How to Connect with an Independent Agent in Tennessee
Your Tennessee commercial insurance policies can be hard to find if you're not an experienced adviser. There are a lot of ins and outs when it comes to protection for your operation. Business interruption insurance will help keep your company alive during a significant loss.
An independent insurance agent has access to several carriers so that you get the best deal in town. They work on your behalf at no cost to you, saving you time and money. Connect with a local expert on TrustedChoice.com in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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