Wading through your existing insurance policies can be daunting. Knowing what you are and aren’t covered for can be a challenge, especially when you are faced with circumstances beyond your control. If you have experienced property damage to a business property that interfered with your business, your commercial insurance may cover business losses and extra expenses.
Commercial insurance policies are incredibly important to have in order to keep your business up and running, no matter what. Natural disasters or fires can be devastating to a community, and businesses that can stay open or reopen quickly will be able to support those communities looking to rebuild. Having the financial protection of a commercial insurance policy means not having to worry about how you’ll recover, but how soon you’ll recover.
Dealing with extra expenses
Some commercial insurance policies have provisions for extra expenses you may incur as a result of your property being damaged by fire or a natural disaster. If your property is damaged and you are losing business because you have to shut down for a period of time, you may be compensated for those business losses by your insurance. Other business losses could be because customers can’t access your business due to the fire or natural disaster shutting down roads.
There may be extra expenses that aren’t expressly covered in your insurance policy, but that could be covered by your insurance. For instance, a small company owned a property that was damaged by fire. The owner was able to set up a temporary office until a suitable alternative was found about two months later.
In this case, his extra expenses were setting up a new office and eventually moving to a more permanent location. As per his commercial business insurance, extra expenses that are covered include expenses that are incurred trying to avoid or minimize the amount of time your business is closed or not operational. This means that moving expenses and other costs associated with continuing operations at another location are covered by your insurance.
Additional expense coverage can be used to replace personal property that you use in your business, like furniture and other office supplies. A commercial insurance policy could compensate someone for the business income loss they might face.
Other extra expenses
Another commercial insurance extra expense comes in the form of preventative measures taken to save a property from further damage. After a storm, water trucks and generators were brought in to a property to save the landscaping, which was a golf course. Since the land was essential for the continued operation of the business, the extra expenses of the water trucks and generators to save the grass would be covered by their commercial insurance policy.
These expenses would be covered because they serve to minimize the time a business is not operational and, ultimately, reduce the total amount of loss a business faces during the time they are closed.
Commercial insurance is designed to keep your business running for as long and as well as possible. If you do face closures or damages because of a natural disaster or a fire, your commercial insurance may cover additional expenses you may face in the course of preventing further losses. Most expenses that you face that minimize your total business losses may be covered by your insurance, as will extra expenses incurred to make sure your business can operate at any sort of functional level.
There are details and stipulations in commercial insurance policies that dictate what extra expenses qualify. If you do have a commercial insurance policy, go over it with your insurance agent to see what sort of expenses you may be covered for if the unexpected happens.
THE SKYLINE DIFFERENCE
Other brokerages take a cookie cutter approach to insurance and outfit their customers with generic coverage. Skyline is different. We believe insurance should be built on innovation and experience. We appreciate the fact that every engagement is unique and understand proper coverage requires a deep understanding of the underlying business and individual.
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