Learn more about this essential commercial coverage.
As a business owner, you might feel satisfied knowing that your company has the right business insurance in Dallas, Texas to protect against liability, property damages, and employee injuries. However, you still need to secure financial protection in the event that your business must close its doors temporarily. This is where business interruption insurance comes in. Here’s what you need to know about business interruption coverage.
What is Business Interruption Insurance?
Business interruption insurance covers a portion of a business’s lost revenue if it is forced to temporarily shut its doors. In addition to paying a portion of this lost capital, business interruption insurance also offers financial support to pay for a business’s recurring expenses. For instance, this type of insurance can help you cover your business’s rent, utility bills, and employee paychecks.
When Does This Insurance Kick In?
Business interruption insurance coverage kicks in whenever a covered peril causes damage to your business’s physical building or the supplies and equipment that are necessary to complete normal operations. Common business interruption situations include fire, flood, vandalism, theft, extreme weather events, and so on.
Is This Coverage Mandatory?
While business interruption insurance is highly recommended, it is not legally required. However, keep in mind that failing to secure this protection could leave your business vulnerable. If you do not have enough money saved to cover the cost of a business interruption, then a temporary closure could become a permanent one. Securing the right business interruption insurance ensures that this scenario does not become a reality for your company.
How Much Does This Insurance Cost?
The cost of business interruption insurance will depend on the nature and location of your business. For instance, if your business often works with fire or dangerous substances, then this increases your business’s risk for damage. Because your risk for business interruption is higher, you will have higher insurance costs. Similarly, if your business is located in an area that experiences major storms or high fire risk, then your insurance rates will also be on the higher end.
This is what you need to know about business interruption insurance. Do you need help securing the right business insurance in Dallas, Texas? If so, then contact the experts at Champion Commercial Insurance. We are ready to get you the coverage that you need today.