Savvy business owners know about the value of planning for the unexpected. Fires, storms, property damage and other unforeseen events can bring your operations to a sudden halt. If you lack protection, this disruption could result in devastating financial losses. That’s why you need business interruption insurance.
Why Business Interruption Insurance Matters
Also known as business income insurance or contingent business interruption coverage, this policy is a type of commercial insurance that replaces some income your company loses when a covered event forces you to shut down temporarily.
Imagine a tree crashing through your office roof during a storm. Your property insurance may cover the cost of repairs, but what about your lost revenue while you’re unable to operate? Business interruption insurance fills that gap, helping you meet ongoing financial obligations while your business recovers.
What Does It Cover?
We’ll design a business interruption insurance policy to cover your most critical expenses during a forced shutdown. Depending on the details of your specific policy, it may include:
- Lost revenue based on your past earnings and projected income
- Rent or lease payments for your business location
- Loan payments that continue during the downtime
- Payroll for your employees
- Monthly or quarterly tax obligations
- Relocation expenses if you need to operate from a temporary location
- Extra expenses required to continue operations, like equipment rental or expedited shipping
- Employee training costs if your staff needs to learn new systems or machinery after a loss
In some cases, policies can also include coverage for civil authority shutdowns, such as government orders that block access to your premises.
How Much Coverage Do You Need?
Estimating your business interruption coverage needs requires a close look at your financials and risk factors. Your gross earnings and profit projections are good starting points. You’ll want enough coverage to sustain your business through a realistic recovery period.
Ask yourself:
- How long would it take you to get back up and running after a loss?
- Could you find a suitable temporary location to continue operations?
- Are your current safety measures (like sprinklers and alarms) up to date?
Choosing the correct coverage limit is critical – if your losses exceed it, you’ll be responsible for paying the difference out of pocket.
Business Protection Starts With a Conversation
The Ingram Agency understands that no two businesses are alike. That’s why we’ll work directly with you – not through layers of bureaucracy – to tailor coverage to your needs. Our founder, Chris Ingram, takes a hands-on approach, treating every policy like it’s his own. Whether you need business interruption insurance, cyber liability protection, or a full risk management review, we’ll connect you with top-tier carriers and competitive rates without compromising service.
Serious business coverage starts with a serious partner. Reach out today to start a conversation about how to protect your income – and your future.