business interruption insurance

At Blue Lion Insurance Advisors, LLC, we provide our New Jersey commercial clients with insurance coverage to protect their companies and their employees. One essential type of coverage we offer is Business Interruption Insurance. Because our insurance advisors are unaffiliated with any particular insurance company, they are fully committed to working in your best interests. Contact us at (732) 649-1600 or online for a free consultation so we can discuss the broad range of cost-effective options available.

No business is able to thrive when it is unable to open. Business Interruption Insurance protects your company in case you have to shut down due to, for example, storm damage or theft. Many business owners do not recognize the enormous negative impact the temporary closure of their business will have on their bottom line. Without Business Interruption Insurance, when income is interrupted and bills still have to be paid, the consequences can be devastating. 

What exactly does Business Interruption Insurance cover?

There are a great many events that may require you to close the doors of your store, office, or factory during repairs, including:

  • Wind, rain, snow, or ice damage from a storm
  • Theft or vandalism
  • Plumbing problems that require clean-up and/or turning off the water
  • Fire or smoke damage
  • Falling objects

Whatever causes your business’s forced closure will be expensive since while you are unable to provide the goods or services that bring in revenue, you will still owe rent, have to pay salaried employees and pay assorted incoming bills.

Business Interruption Insurance covers the operating expenses for issues mentioned in the policy. Contact our knowledgeable insurance advisors so we can explain the details of each policy you are considering to see which one best meets your needs and whether you may require additional coverage.

How Business Interruption Insurance Will Protect You

As noted, the costs of being in business do not disappear during a forced temporary closure. That’s why having Business Interruption Insurance is critical to helping your company survive the loss of income by paying claims for:

  • Lost revenue
  • Business loan payments
  • Rent or mortgage payments
  • Costs of temporary relocation
  • Payroll for salaried (exempt) employees
  • Costs of training employees to operate new equipment
  • Taxes

If you begin to total the tremendous expenses involved in keeping your business afloat while it is not generating income, you will realize that Business Interruption Insurance is invaluable.

Business Interruption Insurance Does Not Cover All Situations

Like all categories of insurance, Business Interruption Insurance has its limits, some of which have been relevant during the COVID-19 pandemic. Most of the following exclusions from Business Interruption Insurance policies will probably not surprise you:

  • Damaged property (since it is covered under Commercial Property Insurance)
  • Flood or earthquake damage (each requires a separate policy)
  • Any undocumented income not listed in your business’s financial records
  • Utility bills (because utilities are typically shut off during repairs)
  • Communicable diseases that result in a shutdown of your business
  • Cyber attacks (because they are covered under separate policies)

As you might expect, many business owners were dismayed to find that their Business Interruption Insurance coverage did not apply to the COVID-19 pandemic. Many are still in litigation surrounding the issue.

Why You Need Our Excellent Insurance Advisors

There are a number of complexities involved in shopping for business insurance. For example, Business Interruption Insurance is often bundled with General Liability Insurance, Commercial Property Insurance, and Data Breach Insurance as part of a Business Owners Policy (BOP) for companies with 100 or fewer employees.

It takes an in-depth understanding of commercial insurance policies of all kinds to make a wise decision about which policies will best suit your company. Our insurance advisors have that understanding and the skill set to put it to work to provide you with comprehensive, cost-effective coverage.

Contact Us To Make Sure that Your Business’ Insurance Policy Is Blue Lion Strong™