NY Commercial Insurance 101: What is Business Interruption Coverage?

Business interruption insurance is a special type of coverage that can be added to a NY commercial insurance plan. It’s designed to protect your business venture financially in the event that a covered risk prevents you from operating effectively for a period of time, resulting in losses. But why might you need business interruption insurance?

Fire & Natural Disasters

If a fire destroys your building, it can take weeks or months before normal operations can be resumed. In most cases, income would be lost during that period while many regular business expenses would continue. The same situation arises when natural disasters strike. Does your current commercial insurance in NY cover you for business interruption? And if so, does it cover you if that interruption is due to an earthquake or flood?

Your Suppliers

Let’s say that you’ve taken out coverage for business interruption after a disaster – but a disaster destroys the premises of your biggest supplier, rather than yours, and they’re suddenly unable to supply you? If you’re unable to find a replacement supplier, that too could bring your business or production to a halt.

Contingent business interruption insurance can offer you cover for losses in those types of circumstance. With any business interruption insurance, however, it’s vital to know what exclusions apply and source additional coverage if you need it. Do you need to add this type of coverage to your NY commercial insurance package?