NEWS & EVENTS
Maintain Income Even If Your Business Has To Close Temporarily
When purchasing Florida commercial insurance for your business, it’s important to have protection from the financial consequences of accidents and mishaps. Although businesses typically purchase property coverage, many business owners may be unaware of the benefits of having business interruption insurance in place. Business interruption insurance helps provide compensation for trading losses associated with an insured event.
A disaster like a fire at your business premises for example, could force you to close the business while the building is restored. Property insurance is designed to help cover the cost of repairing or rebuilding the business premises and replacing furniture, equipment and inventory items lost in the fire. However, business interruption coverage is designed to ensure that the business has cash flow during the time the enterprise is shut down.
Having no trading income, even for a short time, could threaten the future of a business, especially at a time when the economic climate is unstable and profit margins may be low. Even when a business temporarily closes after a disaster, bills for ongoing costs such as rent, utility charges and wages may still have to be met. There may also be additional expenses, like rent for temporary premises, or advertising to keep customers informed about plans for reopening the business.
By purchasing business interruption insurance as part of Florida commercial insurance you may avoid the risk of a drastic reduction in income if your business has to close temporarily. Call us to learn more about the benefits of business interruption insurance.
Disclaimer: The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.