Business Interruption Insurance Protects Against Lost Profits


Released on: November 12, 2009, 11:05 am
Author: Rafael Onak
Industry: Small Business

The business industry these days is in need of some help. Businesses left and right are being forced into bankruptcy, regardless of whether they’re neighborhood staples or new up-and-comers. On top of having to worry about keeping their profits in the green, business owners also have to adequately protect their establishments against catastrophic disasters such as fires, tornados, floods, etc. A recently published article on reveals the importance of business owners purchasing a quality business interruption insurance policy.

The article, titled Business Interruption Insurance: When Disaster Strikes, emphasizes that a quality business interruption insurance policy can help prevent a business from stopping or slowing down production should a catastrophe strike. Most standard policies include compensation for profits the company would have earned had the property not been affected by a catastrophe. For example, if a business’s building burns down to the ground and the business is forced to relocate, all of the profits it loses are covered.

Any expenses the company pays for are also covered in a standard policy, particularly electricity and heat, which may occur even if a business’s operations are put on a temporary hiatus. There are some disclaimers, however, to a business interruption insurance policy.

“Keep in mind that a business interruption insurance policy is not your standard policy,” the article describes. “It is not sold by itself, but instead is most commonly added onto a property insurance policy or included in a separate package. More often than not, it takes longer to renovate a building than initially anticipated.”

So how affordable is quality coverage? The price of a business interruption insurance policy depends on a variety of factors, including the location of the establishment, premise of the business and how easily it adapts to operating at a temporary location. Business owners looking to obtain a business interruption insurance policy for their business should contact a business insurance agent today.

Go to for more information and to receive insurance quotes from up to five local agents.

Contact Details: Tom Lustina
435 North LaSalle
Chicago, IL
614 286 0193


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