What Does Business Interruption Insurance Not Cover?

As a business owner, you may not understand what type of insurance you need, particularly if you have just recently started your company. One very important type of insurance is business interruption coverage. Business interruption coverage is just what it sounds like. It provides coverage in the event that your business is interrupted for certain reasons. There are some events, though, that business interruption insurance will not cover. Below, our Daytona Beach business interruption insurance claims lawyer explains further.

Business Interruption Insurance Covers Most Natural Disasters 

Like homeowners insurance, business interruption insurance will provide coverage for certain natural disasters. Some of the most common natural disasters covered under business interruption policies include:

• Theft
• Fire
• Hail
• Vandalism
• Wind
• Lightning
• Terrorism

Business interruption insurance does not cover the physical damage caused by the above events. Instead, it covers any losses caused by an interruption of business triggered by those events. For example, if a fire caused you to close your doors for one month while the damage was repaired, business interruption insurance would provide coverage for the loss of business.

What Coverage Does Business Interruption Insurance Provide? 

A business closure for even a few days can result in a great deal of financial losses. Business interruption insurance can cover the cost of these losses so your company does not suffer more than necessary. Some common types of coverage provided by these policies are as follows:

• Taxes
• Payroll and employee’s wages
• Lost profits
• Day to day operating expenses
• Relocation expenses
• Cost of new machinery
• Cost of retraining employees about how to use new equipment
• Monthly loan payments

Certain Losses are Not Covered 

While business interruption insurance can cover you for many losses, there are certain things that are not covered. These include:

• Flood-related losses: Just as homeowners insurance policies rarely cover damage from flood-related losses, the same holds true for business interruption insurance. If you suffered the above losses due to a flood, you are likely not covered. Purchasing a separate flood damage policy is recommended if your business is in a flood zone.
• Physical damage: While you likely have to close your doors because the property is physically damaged, business interruption coverage does not pay for the actual physical damage. It only covers losses you sustained as a result of the closure. Other parts of your policy, or a separate policy, can cover the physical damage to your business.
• Employee injuries: Natural disasters, fires, and other events can cause injury to your employees. Business interruption insurance will not cover the cost of these injuries so it is important to purchase and carry workers’ compensation insurance.

Our Business Interruption Insurance Claims Lawyer in Daytona Beach Can Determine if You are Covered 

Insurance policies are very confusing, and your insurer is unfortunately, not on your side. At Bundza & Rodriguez, our Daytona Beach business interruption insurance claims lawyer can determine what coverage you are entitled to and help you get it. Call or text us now at 386-252-5170 or chat with us online to schedule a free consultation.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0624/Sections/0624.155.html