When you own and operate a company, there are many coverages you will need for proper protection. In D.C., there are 76,083 small businesses. If you're one of them, you'll want business interruption insurance.
An independent insurance agent can help with coverage and premium options. They work with several carriers so that you get the best insurance around. Connect with a local expert for custom quotes today.
What Is Business Interruption Insurance?
How long would your D.C. business be able to survive a closure? If you had to shut your doors due to a covered loss, could you stay operational? Business interruption insurance can help with just that. Take a look at what it covers.
- 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 the District of Columbia, $750,576,000 in commercial insurance claims were paid in 2019. If you want adequate protection, business interruption coverage can help. 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
The cost of your commercial insurance policies will vary depending on several items. In D.C., your premium will fluctuate depending on risk factors. Your personal data, loss history, the local crime rate, and weather will impact your pricing.
D.C. natural disasters that will impact your premiums
- Severe storms and lightning damage
- Hurricanes and tropical storms
- Heavy snow
- Burglary and other property crimes
Business Interruption Insurance Exclusions
Your small business insurance will come with exclusions. The carriers won't be able to insure everything and will therefore set some parameters. Check out some standard exclusions that are usually not covered under your D.C. business interruption insurance.
- A pandemic: If a pandemic occurs, causing your business to be temporarily shut down, business interruption coverage will not apply.
- 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 that you can prove.
Indemnity Period for Business Interruption Insurance
All of your D.C. commercial insurance policies will provide coverage up to the preselected limit preselected or a set period of time. If your insurance goes by time, this is known as the indemnity period. 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 for a covered loss.
Business Interruption Insurance Extra Expense
When a loss occurs, you won't know what additional expenses could arise. If you have to close your doors, business interruption insurance will help foot the bill. Extra expense coverage is an option that comes with business interruption 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 Business Interruption Insurance
If your company has to pump the breaks due to a covered loss, you won't be the only one affected. Your employees will bear the brunt of the misfortune if they have to find other jobs. Small businesses employ 247,461 people in D.C.
The truth is, small business owners usually don't have the cash flow to sustain a closure. Some may run out of funds before they can open again. Business interruption insurance will help keep your operation running smoothly.
How to Connect with an Independent Agent in D.C.
In D.C., your insurance is essential to your growth and success. One wrong claim could cause a major financial hit to your business. To make sure you have all the right protection, consider working with a licensed professional.
An independent insurance agent has access to a network of carriers so that you get the best coverage and rates. They do the shopping for you at no cost, making it easy to find insurance. Connect with a local expert on TrustedChoice.com for details.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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