Picture this. Your business is unexpectedly hit with a fire or hurricane. Your operations are suspended and your ability to generate revenue is severely hindered. Would you be able to:

• Make up for the profits lost while your business is shut down?
• Cover ongoing expenses, such as payroll and rents?
• Cover the extra cost of resuming your business as quickly as possible?

Yes, if you have business interruption and extra expense insurance.

“Business interruption and extra expense insurance are essential to keeping your business running when operations are suspended due to a disaster,” states Bill Cilente, executive vice president and product coordinator for the Commercial Lines Division of The NIA Group. “Business interruption insurance will reimburse you for lost profits and/or fixed expenses incurred while your business recovers and extra expense insurance will cover expenses related to setting up a temporary location while your property is being repaired.”

How It Works

While property insurance covers the direct loss to property as a result of a fire, hurricane or other covered event, business interruption insurance covers the direct financial loss caused by your inability to utilize your damaged property.

Business interruption insurance can also cover the financial loss incurred when the physical structure of your business is not damaged, but your business is still forced to cease operations. This type of interruption can be caused by an interruption of utility services or your third-party supplier’s inability to provide components you need in order to continue operations.

If your property is damaged, extra expense insurance will cover the cost to move to and from a temporary location, rent temporary equipment, and pay for extra labor costs such as overtime and transportation allowances.

With business interruption and extra expense insurance, you can rest assured that you will be able to resume business once your property is restored. Without this coverage, you may struggle with the loss of key employees or a severe lack of operating funds.

Why Your Business Needs It

Business interruption and extra expense insurance can help your company rebound from a serious setback – and escape financial ruin. Purchasing this coverage is a smart idea for all types of businesses, including manufacturing companies, restaurants, hotels, hospitals, and telecommunications providers. 

Remember that you are more likely to recover from a disaster quickly when you: a.) plan ahead by purchasing the proper insurance for your company, and b.) develop, maintain and communicate a strong recovery plan.

Coverage Costs

The cost of business interruption and extra expense coverage is primarily determined by the property rate at your place of business.

Learn More

To learn more about how Business Interruption insurance can help to safeguard your business, contact Bill Cilente at 201.845.1330 or via email at wcilente@niagroup.com.