You receive a phone call in the middle of the night. Your retail store is on fire. You race to the scene. Your business is a loss. What options do you have at this point?

If you have the right type of business insurance, you may have financial help. Business insurance often provides coverage for this type of event. It can help your business to rebuild. It may help you to cover your costs in the meantime. Look at how this happens.

Understanding Business Interruption Insurance

In an event like a fire, the damage will take time to overcome. You will need to clean up. You may lose most of your furnishings and equipment. Your inventory is a loss. Your business insurance will cover this type of loss up to the dollar amount on the policy. It may help you to rebuild the business. It can help you buy new inventory. That is going to take time, though.

But, what happens between the hazard and your reopening? Most businesses will need to make payments during this downtime. They need to pay employees. They may need to pay vendors to ensure they keep contracts in good standing.

Business interruption insurance can help. It can pay you for the lost income in some cases. It might cover the revenue lost. This is the amount of earnings the business is likely to have if it was open and operational. It can also cover electricity costs or pay any other business costs.

This policy tends to have a waiting period. Most policies do not begin to provide coverage for at least 48 hours. If the downtime lasts longer than that, call your insurance agent.

When a hazard occurs, the agent will discuss the event with you. The first step will be to determine the cause of the incident. If the policy coverage applies, your agent will help you put it into action. The policy will also list how long the coverage applies and how much you can receive.

In an event like this, having business insurance can make all the difference. Improving your coverage is important. Consider the value of upgrading your policy. Adding business interruption coverage does not have to be expensive. It can be very important in the event of a significant loss.

Talk to your agent about this type of coverage. Then, rest assured the help you need is available if this type of event takes place.

Gray Insurance Group, Inc. has your insurance needs in mind. If you need business interruption coverage, one of our agents can help you get a policy. Call us today at 410-879-6383 for more information.