Don’t Let A Fire Ruin Your Business: How Business Interruption Insurance Can Help
Restoration Process and How Coverage Helps
Fire may cause significant business interruption, depending on the level of damage to your commercial property and its contents. While commercial coverage will likely help you rebuild the structure and possibly restock merchandise, the actual financial losses from being shut down will probably not be covered, which is why interruption insurance was created. Before diving into interruption coverage, it is worth understanding the process of restoration and how coverage helps.
1. Commercial Insurance Helps Restore
Having commercial insurance ensures that your business will be restored structurally. Coverage will likely cover the cleanout, tear down and fire restoration work. However, these policies are meant to reconcile physical loss, to restore what has been broken. Interruptions are not considered tangible losses and thereby require additional coverage.
2. Interruption Insurance Helps Sustain
Interruption coverage was created to help sustain business during unintended closures due to property loss or damage. This insurance relies on historical data to figure financial projections of earnings during the restoration phase. While the figures do not always reflect current earnings, the cash flow does allow a business to remain operational. However, this assistance is limited to 30 days unless otherwise approved.
3. Restoration Helps Rebuild
Beyond insurance coverage, the actual restoration process helps in the physical restructuring and rebuilding of the property, to make it whole again. This process can be long and all-encompassing, including several phases: cleanup, tear out, tear down, reframing and finishing.
4. A Specialist Speeds Up the Process
Since interruption coverage is timeframe dependent, hiring a commercial building restoration service in the Santa Clara, UT, area may be a wise decision. These services can significantly increase the speed of the restoration process because they are a one-stop shop. Rather than you having to hire several different contractors, these companies facilitate the entire project and streamline the process for you.
While commercial property coverage is invaluable after a disaster, helping a business to rebuild physically, it is interruption insurance that sustains operations and secures a future for a business. No matter your company’s current financial standing, remember to budget for potential interruptions.