Business Interruption Insurance in Fort Worth, TX: What You Need to Know

7/2/2021 (Permalink)

Business interruption insurance covers you from financial losses incurred during, well, a business interruption.

Insurance from natural disasters, fires, and floods should be enough to protect your commercial property from monetary losses fully, right? But unfortunately, commercial property insurance isn’t always the most robust safety net. 

What about the money you’d lose while you wait to get back on your feet and operations running again? That’s where business interruption insurance comes in. 

Business interruption insurance covers you from financial losses incurred during, well, a business interruption. So, for example, while commercial property insurance would pay for roof repairs from hurricane damage, it wouldn’t cover the money you'd lose waiting for the roof to get repaired. 

That’s where business interruption insurance comes in. 

Here's what else you need to know about business interruption insurance in Fort Worth, TX. 

How Business Interruption Insurance Protects Your Fort Worth Company

Commercial property insurance pays out claims for direct damage to your property. Say your business was flooded, and you have damaged equipment that needs replacing. The insurer would cover the costs of replacing the equipment. But the policy wouldn’t cover your losses from waiting for that equipment to arrive and employees to learn how it works and operate it. 

While it’s essential to carry a commercial property insurance policy, this type of insurance wouldn’t help you recover losses from interruptions to your operations. 

Business interruption insurance would protect you from these types of financial setbacks:

• It covers profits you’d have earned during a temporary closure
• Pays for operating expenses (wages, utilities, maintenance, repairs, etc.)
• Covers training costs for staff that need to learn how to use replaced equipment

Also, business interruption insurance in Fort Worth protects your finances from disruptions that aren’t the result of property damage. For example, a business interruption policy would pay for your operating expenses and profits lost from forced closures, like street closures from public events or evacuations from natural disasters. 

How Long Does Business Interruption Insurance Last?

This particular type of insurance policy is not meant to cover long-term financial losses. Usually, a business interruption policy lasts for a few weeks or months. The policy is intended to help businesses weather a temporary interruption and isn't designed to carry a company during an economic downturn. 

What’s Typically Covered in a Business Interruption Policy?

Most business interruption insurance policies cover the following financial losses:

• Losses from sudden, personal incapacitation
• Losses from unforeseen natural disasters or local government mandates (e.g., flood and fire damage, storms, road closures)
• Monetary losses from theft or vandalism
• Disruptions from technological failures

Unlike other types of commercial property insurance, business interruption insurance doesn’t insure tangible goods. Therefore, for an accurate assessment of potential losses due to business interruptions, you’ll need a firm and quantifiable grasp of how much your company earns.

Fully Protect Your Commercial Property and Business From the Unforeseen

A robust business owner's policy that includes coverage for business operations can fully protect your company from financial setbacks due to disasters and forced closures. 

At SERVPRO North Richland Hills, we’ve been helping commercial property owners restore their buildings to pristine, safe conditions after fires, floods, and storms. If your business has been damaged, contact us today or call us at (817) 985-4815 for a free estimate on our Damage Restoration Services.