Business owners rely on their income to cover company expenses and their own pay. Many assume that they won’t ever have to close the company unless they want to; however, there are times when it might be necessary for businesses in Nettleton, MS, to close unexpectedly. In those times, the company’s income grinds to a halt.
Business interruption insurance is one option that business owners should understand. It may help offset some of that income loss. This insurance can provide a financial safety net for covered events, allowing the business to stay afloat and recover from the event.
What Does Business Interruption Insurance Cover?
The exact coverage a business has depends on the policy it obtains. There are a few coverages that are common for these policies. These include:
- Income replacement: If the company cannot generate revenue due to the covered event, a policy may reimburse you for the income you would have earned during the interruption.
- Fixed expense coverage: Fixed costs, such as employee salaries, utilities expenses, and rent payments, continue to accrue, but insurance coverage can help pay for them.
- Temporary relocation: Business interruption insurance may cover the costs of temporarily relocating the primary business location if it becomes unusable due to an event.
If you’re in the market for business interruption insurance for your company, speaking to an experienced professional at Sprout Insurance can help you learn about the coverage options you have for a company in Nettleton, MS. Be sure to discuss the covered events and exclusions; so you have a complete understanding of what’s covered by the insurance policy.
