How Property Owners Insurance Can Protect You From Business Losses
As a business owner, property damages you suffer due to adverse events can result in heavy repair costs as well as lost profits. Property insurance coverage you have in place can help to offset these losses and can make up for any business interruptions you experience. To ensure you are protected, it is important to carefully review the terms of your policy. The following details key provisions you need to be aware of.
What To Look For As A Business Owner In Your Property Damage Insurance Policy
Property damages in Daytona Beach are commonly caused by heavy rains, wind, and hail, as well as fires, smoke damage, and theft. Unfortunately, at the same time as you are facing expensive repair costs, you may also be dealing with lost profits. Property damages can close your business or interrupt normal services you provide for an extended period. Property owner’s insurance policies you have in place can help offset these losses.
As a business owner, the National Association of Insurance Commissioners (NAIC) advises you to be aware of provisions that may be included in your policy, which can help to protect you in this situation. Common phrases and terms to look for include:
- Business interruption insurance coverage: This can help in replacing lost income and profits when operations are disrupted as a result of property damages. It covers common expenses you are likely to incur, such as rent at a temporary location while repairs are made, employee payroll to avoid layoffs, and any taxes or loan payments that may come due while you are closed.
- Extra expense coverage: This is a clause that can be added to an existing policy, providing additional protections until your business is back up and running again. It can also help in replacing lost hardware, equipment, and technology.
- Service interruption clauses: This covers any damages you suffer due to the interruption of utility services, such as lost product in freezers and equipment damaged due to water shut-offs or electrical outings.
- Contingent business interruption (CBI) coverage: This covers you against direct losses caused by damages suffered by suppliers or other business associates.
- Civil authority coverage: This covers you against direct physical losses due to a named public safety threat and direct government order. A recent example is forced shutdowns and losses that resulted due to the COVID-19 pandemic.
The Insurance Information Institute (III) advises that when investing in business income coverage, be aware of policy exclusions and time limits that exist. Insurers often rely on stipulations in policy documents as a means of denying claims.
Contact Us Today for Professional Help
Property damages can put the future of your business in jeopardy. At Bundza & Rodriguez, we are here to help you get the compensation you are entitled to in a claim. Before accepting a settlement that fails to cover your total costs, contact our Daytona Beach property damage attorneys and request a consultation today.