Business Interruption Insurance - South Carolina
Serving Mount Pleasant, Charleston, Saint Stephen, and surrounding communities.
Many companies rely on access to property in one form or another to continue operating and generating income. Fortunately, insurance solutions are available to help businesses stay afloat in the event of unforeseen interruptions. Business interruption insurance is tied to specific property and provides financial assistance when a premises has to close after covered property loss or damage occurs like a fire, vandalism, or severe weather. Coverage may also be available when business income is reduced or slowed as a result of a covered property-related loss. While policies are tailored to meet the needs of each unique business, typical coverage pays for lost income and certain expenses like payroll and debt, amongst other things. The maximum duration of coverage varies depending on the carrier and policy; however, terms often end after one year and some can be extended. It’s also important for business owners to know that income loss resulting from flood events, earthquakes, and sometimes wind and hail damage require separate business income policies to protect against those specific perils.
Moulton & Sheally Insurance provides comparative quotes from multiple insurance carriers to help your business secure the right amount of coverage for the most affordable rate. If we can supply more information or assist you with pricing for a business interruption policy for your company, don’t hesitate to contact our agency.
What does a business interruption policy typically cover?
- Net Income replacement as if the property closure did not occur. (Revenues - Expenses = Net Income)
- Continuation Expenses including pertinent operational costs necessary for maintaining future business such as rent, taxes, debt, and ordinary payroll.
- Extra Expenses covers additional costs incurred to mitigate the impact and duration of the business interruption, including expedited repair fees and temporary relocation expenses in some cases.
Additional Coverage Options to Consider
Dependent property coverage is designed to protect businesses when other parties like suppliers, clients, or manufacturers are impacted by property damage that in turn prevents them from conducting operations. Civil authority coverage helps when a covered income loss results because a civil authority prohibits access to a surrounding area that prevents access to your property. Interruption of computer ops coverage protects against the loss of critical technology impacted by damage to a premises containing said items such as servers or computers lost in a fire. Alterations and new buildings coverage can be purchased as well to shield against loss related to new construction or remodeling delays that prevent a business from starting their operations as anticipated.
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Allow Moulton & Sheally's commercial team to guide you through the process of securing the right interruption coverage so your business and employees will be taken care of if an unexpected property-related closure should arise. Contact our agency to get started right away!
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How is net income for business loss measured?
Net income is calculated by subtracting business expenses from business revenues. (revenues - expenses = net income).
Does business interruption insurance cover closures due to virus or bacteria?
The answer is largely no, although the COVID-19 pandemic continues to unfold, and we expect the insurance market to develop more products to address this need in the future. When COVID-19 was first detected in the U.S., very few insurance carriers offered business income coverage for virus and bacteria closures. Furthermore, claims history which often helps with drawing conclusions does not yet exist. As of writing, carriers were not prepared to make statements regarding loss of business income due to state required closures either. In extremely rare cases where income loss due to virus or bacteria is specifically included in a policy, there may be coverage to decontaminate the building for only the period of time it takes to perform that task. Certain exclusions are also known to apply such as closures due to self-imposed quarantine. Liability coverage related to employee and customer contamination may also apply, although determining proof of the contamination source is involved, which again is difficult to assess with any level of certainty at this time.
TOGETHER IS BETTER
You could save money on business interruption insurance by combining it with other coverages you need like commercial property, general liability, or workers' compensation policies.