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Business Interruption Insurance Is Vital


The Associated Press:

Although most small business owners know they need property and casualty insurance for their premises, many don’t realize they need specialized insurance coverage to limit their losses from a disaster.

Perhaps the biggest omission owners make when buying a commercial policy is business interruption insurance.

Business interruption insurance covers profits that are lost and expenses that continue to be incurred when a company is forced to shut down by a disaster, or even by an event such as an extended power outage.

Policies typically have a 48-hour waiting period before coverage starts, but, depending on how much coverage a business buys, interruptions up to 360 days can be covered.

Among the expenses that business interruption insurance covers are salaries, rent and electricity — costs that you still need to pay even though you can’t operate.

Photo by Ottoman42.

   

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