Running a business comes with its fair share of uncertainties, and at AFI Insurance, providing commercial insurance in and around Denver, CO, we understand the importance of protecting your livelihood. One essential coverage option to consider is business interruption insurance. But what does it actually cover?
Understanding Business Interruption Insurance
Business interruption insurance is designed to safeguard your business against the loss of income resulting from a covered event that disrupts your operations. This type of insurance doesn’t cover physical damage to your property but focuses on the income you lose during the period your business is out of action.
What Does Business Interruption Insurance Cover?
Typically, business interruption insurance covers lost revenue, fixed expenses, and costs associated with operating from a temporary location if needed. For example, if a fire damages your premises and you need to close for repairs, this insurance helps replace lost income and pays for ongoing expenses like rent and salaries. It ensures you can continue to support your employees and meet financial obligations while getting back on your feet.
Understanding the Limits of Business Interruption Insurance
While business interruption insurance offers valuable protection, it’s important to understand its limits. It usually only covers interruptions caused by specific perils like fires or natural disasters. Events like pandemics are often excluded unless specified in the policy. Reviewing your policy details with a knowledgeable agent is crucial to ensure you have the coverage you need.
Let Us Help Your Business Find the Ideal Commercial Insurance Coverage
At AFI Insurance, serving the greater Denver, CO area, we’re dedicated to helping you find the right coverage for your business. Contact us today to learn more about business interruption insurance and how it can protect your future.
