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Business Interruption Insurance

Protection When You Need it Most

If we’ve learned anything, it’s that you can never take for granted that it will always be “business as usual.” Natural disasters can force your business to close down, disrupting sales and cash flow. Business interruption insurance is designed to protect the company you’ve worked hard to build in the event of a covered event. Business Interruption Insurance is part of our Commercial Insurance policies.

Business Interruption Insurance

What is Business Interruption Insurance?

Business interruption insurance is insurance coverage that replaces any business income lost due to closure or decreased operations resulting from a disaster. Whether you need to close due to a fire or electrical storm, you can rest assured knowing that your business protection insurance will cover your bills and employees during an unexpected closure. A business interruption policy can protect your company from financial losses associated with unknown risks.

What does Business Interruption Insurance Cover?

Sometimes called business income coverage, business interruption insurance helps protect your business against lost income after a covered peril affects your business, including property damage. This coverage typically covers fire, theft, falling objects, and lightening, etc. While the current global pandemic is not currently covered in basic business interruption, you can purchase pandemic insurance as an extension of your plan.

Most business interruption insurance policies cover the following items:

  • Lost profitscoverage will provide reimbursement for profits that would have been earned had the unfortunate event not occurred (based on prior months’ performance).
  • Fixed costsdue to reduced or interrupted business, such as operating expenses and other costs incurred for doing business.
  • Temporary locationin the event that your physical location is left unusable, some policies cover the costs associated with moving to and operating from a temporary business location.
  • Damaged property costscoverage may help to replace any equipment or machinery damaged during the covered event.
  • Commission and training costs: in the wake of a disaster, your company may need to replace machinery and retrain personnel on how to use the new machinery. 
  • Extra expensescoverage may provide reimbursement for reasonable expenses (beyond the fixed costs) that allow the business to continue operating while the business gets back to its pre-disaster operations.
  • Employee wagesbusiness interruption insurance covers employees’ wages to help you retain your staff during your closure.
  • Taxes: businesses are still required to pay taxes, even when disaster hits. Tax coverage will ensure a business can pay taxes on time and avoid penalties.
  • Loan payments: loan payments are due monthly and insurance can help your company make those payments even when you are not generating income.

Business Interruption Insurance Exclusions

Business interruption insurance does not cover everything. Common policy exclusions include:

  • Undocumented income – Coverage is based on previously documented income, so be sure to document all of your income.
  • Utilities – During closures, utilities are typically turned off and they are not covered unless your business moves to a temporary location. 
  • Partial closure losses – Coverage does not go into effect unless your business is completely interrupted. 
  • Losses from closures not caused by covered events – Typically closure due to earthquakes, flood, and pandemics are not covered under business interruption insurance. They require their own policy.
  • Closures due to power outages – Power outages are common and usually restored quickly. Most closures caused by storms and power outages are not covered under business interruption policies.

How Much Coverage Do I Need?

Business interruption insurance typically has a coverage limit. This limit established the maximum amount your insurer will pay toward a covered claim. Any financial loss that exceeds your coverage limit is the responsibility of the policy holder. Working with your insurance professional, you’ll determine the exact amount of coverage needed to protect your business.

Your coverage limits will take the following into consideration:

  • Approximately how long would it take to get your business back up and running after a disaster?
  • If you rent your office space, how well protected is the building?
  • Are the building fire alarms and sprinkler systems functional?
  • How quickly would it take for you to find a suitable temporary location?
  • What are your daily operating and employee wages?
  • What is the value of your equipment and machinery?

How Much Does Business Interruption Insurance Cost?

The price of your business interruption insurance can vary depending on a variety of factors. For example, if your business is in an area more prone to natural disasters, such as hurricanes or tornadoes. It also depends on your industry. For example, if your business is a restaurant you may be more prone to fires than if your business is in real estate.

The cost of your policy will vary based on the following factors:

  • Industry
  • Amount of coverage
  • Number of employees
  • Prior claims experience (if you’ve had to file any previous claims)
Business Interruption Insurance

Reducing Loss After Business Interruption

Understanding how business interruption coverage will protect your business can help you be more prepared in the event of an unforeseen natural disaster. At Petra, our team of insurance professionals is here to help you protect your interests – both personal and professional. 

Lenin Raphael
Lenin Raphael
2024-05-15
Just purchased my second car insurance policy from Ishan Ullah. Great Service. Proactive. Responsive. Highly Recommended! Looking forward to coming back to Ishan next year for my third policy. Thanks Ishan!
Zahid Iqbal Sheikh
Zahid Iqbal Sheikh
2024-05-02
I bought a car insurance from here and the experience was smooth. I was assisted by Mr. Prathvi Singh along the way. Despite a minor issue, he was able to handle the issuance properly with his responsiveness and proficiency. I truly appreciate their dedication to client satisfaction. Highly recommend!
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sakthi kumar
2024-04-29
Good Followups & very friendly
Salman Ali Shahid
Salman Ali Shahid
2024-04-29
We have been dealing with petra for a very long time. A problem that occurred to our building. And Mr. Adrian was the person in charge who had to complete all the tasks. He has completed his required job and he has done an excellent work due to which we have ontained our refunds back from the insurance. And also the required approvals on timister. Adrian was well prompt office work and also was very. Quick and responding to all the corespondence Either through WhatsApp or email promptly, so the appreciation goes towards the good job done.
Sam Sadmi
Sam Sadmi
2024-03-13
Don’t know much about Petra but I know Hero as I dealt with him for many years. Also before he joined Petra. Very reliable and great service. So for me it’s about the people that you work with.
saji velayudhan
saji velayudhan
2024-03-12
Recently I had purchased vehicle insurance policy through Petra insurance broker LLC. My insurance advisor Mr. HERO BULACAN really put his maximum effort for my requirements and assisted in getting an optimum policy. It is worth mentioning that I was also approached other brokers, but unable to get a good deal. Mr. Hero is very transparent and prompt in response. Getting an agency repair within your budget is a challenging task which Mr. Hero has done it in a systematic manner. Thanks for that.
Sonya Coates
Sonya Coates
2024-03-12
Hero is, absolutely amazing he has been my broker for years I have followed him everywhere. Highly recommend him and his new company Petra. Thanks Hero you really are our family hero ha ha
Mohannad Alkhofash
Mohannad Alkhofash
2024-03-11
Excellent experience with Petra Insurance Broker! Their service is top-notch, and the website is user-friendly. Special thanks to Prathvi for making the process smooth and being incredibly helpful.
Natasha Wanda Noval
Natasha Wanda Noval
2024-03-09
This is to express my sincere gratitude for the exceptional service we received during our recent motor insurance renewal. I would like to specifically thank Nishad and Prathvi for going above and beyond to assist us even if it’s weekend. Their willingness to help made the renewal process smooth, efficient and just be on time of our renewal date. Thank you once again for the outstanding customer service.

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