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Can You Afford to Operate Without Business Interruption Insurance?

Can You Afford to Operate Without Business Interruption Insurance?

The lasted data reported by United States Fire Administration estimates approximately 96,800 business related fires in 2016, causing over $2 Billion in damages. While that is a large dollar amount, it doesn’t account for the indirect loss of income that those businesses suffered; which, according to the insurance publication IA magazine, could be 4 times higher. This is where Business Interruption Insurance kicks in.

Business Interruption Insurance, also know as Business Income Insurance, pays for the actual loss of business income that you sustain due to the suspension of your business operations from a covered physical loss on your business insurance policy. This could include a storm, fire, or even a large theft if covered on your policy. When a business is unable to open due to a disaster, there is no revenue generated to pay rent, utilities, and other operating expenses that would still be required. This is where Business income applies. This coverage will reimburse you for lost income, extra expenses, and operating expenses during the period of restoration. In fact, it will even cover payroll for qualified employees so that you don’t lose your staff during an extended closure.

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The Institute for Business and Home Safety (IBHS) reports that 25% of businesses that shut down due to a “Major Disaster” never reopen. This figure doesn’t include the amount of fires previously mentioned which would undoubtedly escalate that figure. Most of the businesses that permanently shut down as a result of a catastrophe don’t close due to lack of building or business personal property insurance. They cease to exist because there is no income to sustain the long layover period.

It is extremely important to insure against the catastrophic loss. This is where Business Income and Extra Expense coverage is vital. Very few businesses can remain viable without a source of income and not all insurance policies provide business interruption coverage. It is recommended to discuss this coverage with your insurance agent to determine the appropriate limit of insurance for Business Income and Extra Expense coverage. Reach out to a Moore Resources agent to further discuss your options and ensure that this coverage is extended on your commercial insurance policy. Many business owners are unaware of the importance of Business Interruption insurance, but it can make or break your business during the time of a major insurance claim.





Moore Resources is an Independent Insurance Agency located in St. Petersburg, FL and offering Homeowners Insurance, Auto Insurance, Personal Insurance and Business Insurance. Our reach extends beyond the Tampa Bay area to the entire state of Florida. Moore Resources has regionally been dedicated to serving the local residents of Pinellas, Hillsborough, Polk, Pasco, Manatee and Sarasota counties; including St. Pete, Tampa, Clearwater, Bradenton, Brandon, Dunedin, Gulfport, Lakeland, Largo, Lutz, Palm Harbor, Pinellas Park, Riverview, Ruskin, Seffner, Seminole, Temple Terrace, Tierra Verde, Town n Country,  and the Gulf Coast Beaches.


The purpose of this blog is to present general information only. It does not interpret specific policies or coverage. In order to obtain detailed information regarding your insurance, contact a licensed insurance agent.