As a business owner, flooding can mean extensive loss, and not just in the property department. While dealing with actual damages can be stressful, it is the damages that cannot fully be calculated that are worrisome. Such damages are typically caused by business interruption. Whether your water issues were caused by a broken pipe, burst supply line, sewage backup or natural flood, you want to have the proper coverage in place.
One such type of coverage is business interruption coverage. Here are just three benefits of investing in this type of policy:
- It compensates you for lost income accrued as a result of having to vacate the premises.
- It covers the money you would have earned based on past financial records.
- It covers operating expenses that continue even though business operations have come to a halt.
In short, business operation insurance ensures that you still make money even if flooding has forced you to put all business operations on hold. When dealing with large water damage, this type of coverage can keep your business in the black and help it get back up and running once the damage has been remediated by a Lombard, IL, water damage restoration team.
Extra Expense Insurance
Some business owners opt to invest in a rider policy, called extra expense insurance. This type of coverage reimburses companies for reasonable sums of money they spend, beyond normal operating costs, to prevent the business from shutting down during the restoration period. Typically, compensation will only be disbursed if the extra money helps to decrease the costs of business interruption. In many cases, extra expense coverage is sufficient and negates the need for a business interruption policy. It is also preferable to business interruption insurance, as it allows businesses to keep operating and therefore, keep customers happy.
Flooding can be a costly peril for most businesses, as not only does it often result in costly property damage, but also, it often results in business interruption. You can reduce the costs associated with such a hazard by investing in business interruption and extra expense insurance.
