If you have suffered a business income loss or an extra expense problem, you are required to pursue normal operation quickly. This requirement protects the insurance company. That way recovery isn't prolonged because the business is enjoying an income stream.
What if business doesn't return to normal volume right away? After the disaster of being forced to close, nothing is more discouraging than opening the door to a slow start. There is special insurance for this situation. It's called Extended Loss After Operations Resume.
Sometimes one business depends seriously on another business. Perhaps there's a fire at a computer chip factory and they can't supply the computer manufacturer. Or the anchor department store in a business's shopping center burns and shopping traffic disappears. Dependent Property coverage, formerly called Contingent Business Interruption Coverage, provides protection.
Many options exist in Business Interruption insurance. For example, the loss of rental from damaged property can be covered. So can the loss of tuition by organizations that receive their income at a given time of the year.
The specifics of business income coverage depend on the perils covered by the policy.
To learn more about your insurance protection, visit our Learning Center or contact one of our licensed advisors. We're here to help!