Insurance for Business Interruption – North & South Carolina
Serving Charlotte, Concord and Huntersville, Mint Hill Matthews, Fort Mill, SC, and the surrounding communities.
Many businesses rely on property to keep them afloat and generate income. There are insurance options that can help businesses keep their doors open in the face of unexpected interruptions. Insurance that covers business interruption is tied to specific property. It provides financial assistance to businesses when they have to close due to property damage or loss, such as fire, vandalism or severe weather. You may also have coverage if your business income is affected by a property-related loss. Although policies can be tailored to each business’s needs, the majority of coverage covers lost income as well as certain expenses such payroll and debt. The policy and the carrier will determine the maximum coverage. However, most policies end after one year. Some terms can be extended. Business owners should also be aware that income loss due to flood events, earthquakes, wind, hail damage, and other natural disasters requires separate policies.
Legion Agency offers comparative quotes from several insurance companies to help you secure the best coverage at a reasonable rate. Contact our agency if you need more information or assistance with pricing for a business disruption policy.
- Net Income Replacement as if the property closing did not take place. (Revenues + Expenses = Net income)
- Continuation Costs includes all operational costs that are necessary to maintain future business, such as rent, taxes and debt.
- Additional Expenses Covers additional costs incurred in order to minimize the impact and duration business interruptions, such as expedited repairs and temporary relocation expenses.
Although the COVID-19 pandemic is still ongoing, the answer is not a lot. We expect that the insurance market will develop additional products to address this need. When COVID-19 was first discovered in the U.S.A, there were very few insurance companies that offered coverage for business income to cover closures of bacteria and viruses. It is not possible to draw conclusions from claims history, which can often be helpful. At the time of writing, carriers weren’t prepared to make statements about loss of business income as a result of state-required closures. If income loss from virus or bacteria is not covered by a policy, it may be possible to cover the cost of decontaminating the building for the time required. Some exclusions may also apply, such as closings due to self-imposed quarantine. Although liability coverage for customer and employee contamination could also be available, it is not possible to prove the source of contamination.
The net income is calculated by subtracting business expenses from revenues. (revenues – expenses = net income).
Legion Agency will help you navigate the process of securing the right coverage to protect your company and employees in the event of an unexpected property-related closing. Get in touch with our agency today to get started!
You may also consider additional coverage options
Dependent property coverage protects businesses from property damage to other people, such as suppliers, clients, and manufacturers, that could prevent them from carrying out their business operations. When a covered income loss is caused by a civil authority preventing access to an area around your property, civil authority coverage can help. Computer ops coverage covers against damage to computers or servers that have been damaged in an accident. You can also purchase Alterations and New Buildings coverage to protect against losses due to delays in remodeling or new construction that may prevent businesses from starting operations as planned.