The COVID-19 pandemic has interrupted the business operations of hundreds of businesses across the Greater Houston area. Small and medium-sized businesses have lost money from being required to shut down and to prevent the spread of the virus. You may have thought about your business interruption insurance working to help sustain your business. Unfortunately, business interruption insurance does not protect against pandemics.
Business interruption insurance is a way to protect your finances in the event your business must shut down. Often times, business interruption policy is bundled in a business insurance policy, but it varies on your provider. Most importantly, business interruption insurance can keep your business afloat while it is shut down.
What does business interruption insurance cover?
Well, business interruption insurance typically activates when a business must shut down due to a perilous reason. For example, a fire within a restaurant may require the business to shut down for repairs. In this case, the insurance will cover the lost income of the business based on earnings prior to the fire.
The policy will also cover extra expenses, such as temporary relocation. Other policies within your package will help cover the damages of your property. If your costs go over your policy coverage, then they must come out of your pocket, or they may be covered with commercial umbrella insurance.
In the event of a pandemic such as the recent coronavirus outbreak, business interruption insurance does not help cover expenses during shut down. Business interruption insurance dictates the reason for the shut down must be due to a physical loss. In some cases, policies will actually include a “viral exclusion” clause, which specifically states the policy does not cover shut down in the event of a disease or virus.
Contact Texas Insurance Agency Today
If you are looking for an insurance policy for your business, then consider Texas Insurance Agency. Our agents are friendly, professional, and experienced. Our agency works with numerous insurance companies to provide the best deals to clients. You may reach us by calling (281) 398-1010. You may also read about our other types of commercial insurance on our website. Let us help your business stay protected.