How Do You Read A Business Interruption Policy?
Having a business interruption insurance policy acknowledges the possibility that a catastrophic event might shut down your business for an undetermined amount of time. Every insurance policy is different, and there are provisions and limitations to every policy. It’s important to read and understand your business interruption policy before you need to use it. Find out what the scope of coverage includes. This is usually the first provision in any insurance policy. It details what financial losses will be covered if your business closes due to some unforeseen event. Read the scope of coverage to see whether the policy merely covers revenue loss or whether it will cover more substantial losses, too. Other things that might be covered include inventory or damage to the physical premises. Figure out what is considered a “Cause of Loss.” Simply put, the insurance company has the right to decide what constitutes a good reason for your business to be out of commission and not generating inco
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