Toole Peet Insurance presents:
Coverage details and risk management resources.
Your commercial policy will generally have a form of business interruption in the form of extra expense coverage which is the extra expense you incur to continue operating perhaps in a different location that you would not have suffered if you did not have the loss. This is often a small limit and should be reviewed and considered on renewal. Your broker can help you determine if you have the correct amount for this.
There are three types of Business Interruption insurance and items to consider for each. You should consider purchasing more than the throw in limits for protecting your business against interruptions as they are often not adequate and a long enough interruption can often put a company out of business.
This is designed to replace income your business would have incurred had no loss occurred. Business income is generally defined as the net profit or loss before taxes, plus continuing normal operating expenses, including ordinary payroll (payroll for employees other than officers, executives, department managers or employees under contract). Coverage is generally limited to the loss of income sustained until the property is restored, or a specific timeframe following the loss.
Business Income Considerations
This is designed to pay for necessary expenses incurred during the period of restoration of the property. Extra expenses include those necessary to continue operating the business at its original location or at a temporary replacement location until the original location is repaired.
Extra Expense Considerations
Contingent Business Income
This is an extension of coverage designed to cover loss of income your business incurs due to a property loss at a key supplier or customer location. For example, if a key supplier experiences a fire at its plant and is unable to deliver parts or goods necessary for the continuation of your business, you may have a claim for a contingent business continuity loss.
Risk Management Resources
As your commercial insurance broker we are here to help manage your risk. We have a selection of risk management tools to help assess your risk for this featured coverage as well as to help implement techniques to help manage your risk and prevent claims from happening in the first place. To request a resource please click contact us so we can work on getting what you need to help manage your risk.