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Where do I find a business interruption insurance policy broker?

If you own a business, or if you work for a small company, it is quite possible that at some point in your career, your business will face a loss of income, a period of partial shut-down, a natural disaster (such as a fire or flood) or some other major problem. This type of disaster could severely impact your company's ability to function. Your company could loose money, customers and even be forced to lay people off. Continuing your business expenses without money coming in to your business could impair the ability of your business to open again and prosper. Have no fear-don't despair! There is a solution for this problem: business interruption insurance! But where do you find a business interruption insurance policy broker?

First let's discuss some of the specific things that business interruption insurance can do for you.

Business interruption coverage fits the needs of a majority of businesses. It can be used in any instance where a company could face a sizeable loss of profits between the time that repairs are completed and the time that turnover is back to normal. There is no limitation on the "diligence and dispatch" with which the repairs must be carried out.

This type of coverage covers you for: the loss of earnings (defined as net profit plus payroll expense, taxes, interest, rents and all other operating expenses) sustained to your business during its time of trial; less operating expenses that do not necessarily continue; and recipient and contributing businesses if your supplier suffers an interruption to their business because of the interruption to yours. It compensates you for the loss of income if your company has to vacate the premises (because of fire or flood, for example). It also covers operating expenses like electricity.

When looking for business interruption insurance, be sure that the policy limits are sufficient to cover your company for more than just a few days. After a major disaster, it can take more time that you might originally think to get your business back on track. Also note if there is a waiting period before the business interruption coverage kicks in. Most insurance of this type has a 48-hour waiting period.

Another thing to know is that the price of the policy is directly related to the type of business you do. The price is also related to how easily your business could operate out of a temporary location. For example, a restaurant would have a greater risk of fire than an accounting firm, and so their policy would probably be more expensive than that of the accounting firm. Another reason for this is that the accounting firm could easily operate out of another location, while the restaurant could not. Even someone who works out of their home should consider purchasing this type of insurance. If nothing else, it would get you a new computer and desk if some damage were to occur to your home office.

So how do you purchase business interruption insurance? This type of insurance is not sold as a policy by itself. It is usually added onto a property insurance policy, or included in a package policy (such as a business owner's policy). If you're interested in purchasing business interruption insurance, talk to your business insurance agent for more information. If s/he does not sell it, s/he will usually know of a reputable source that does sell it.

If you're not sure whether or not you have business interruption insurance, call your business insurance agent and ask if you are covered. If you are not, ask how much it would cost. It might be wise to shop around for the best deal before making a purchase. However, it can be quite convenient to simply buy business interruption insurance from your regular business insurance broker.

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