Business interruption coverage, extra expense coverage, and contingent business interruption coverage are three types of commercial insurance that can support your business continuity plan. Here’s how insurance plays a vital role in keeping your business afloat after a burglary, extreme weather event, or another disruption to your operations.
Business Interruption Coverage
The loss of goods or equipment after a storm or burglary can leave your business vulnerable. Business interruption coverage provides funding for the areas of your business hit hardest, helping replace essentials needed for day-to-day operations.
This type of coverage can help with rent, payroll, and creditor obligations, and can also help replace goods or repair equipment that was damaged or stolen.
Extra Expense Coverage
Extra expense coverage handles costs you wouldn’t normally face as a business owner. If your commercial building becomes temporarily uninhabitable, for instance, this coverage can help offset the cost of leasing alternate workspace while repairs are underway.
Contingent Business Interruption Coverage
Contingent business interruption coverage provides a safety net if your business is impacted by a third party’s disruption. In this case, you’d receive compensation to help offset the costs of continuing to operate. For example, if a key vendor shuts down unexpectedly, you may struggle to obtain materials or essential supplies during that time. This coverage helps keep your business running in the meantime.
Insurance Agent Guidance for Scotia, NY
Contact an agent at Rowledge & Falvo Insurance Agency for further assistance. An agent can walk you through business continuity planning for your commercial establishment.
