Business interruption or “time element” coverage protects you against financial loss from your business being suspended due to insurance damage to your premises or indirect damage, such as power failure, for example. There are many varieties of business interruption coverage. This form of insurance reimburses you for continuing expenses you incur while closed, such as mortgage/rent, utilities, salaries, etc. In addition, business interruption insurance also pays for the profit that would have been earned while the property is restored to its predamaged state.
One form of business interruption insurance provides you with extra expense coverage to meet those costs necessary to keep your firm operating after a loss. For example, this coverage might pay the extra cost of temporary relocation of your business while your building is being repaired. Business interruption coverage often is overlooked.
This is a VERY important coverage and can mean the difference between staying in business and going out of business. The Philleo Agency can help you determine your risk and help provide solutions.