If your restaurant suffers property damage as a result of a fire or storm, Commercial Property insurance will cover the damage to your operation. However, Business Interruption (BI) insurance is needed to step in to help cover your loss of revenue while repairs or rebuilding takes place. BI coverage will also help you meet your financial obligations including paying bills and other additional expenses, even while you are not operating. BI insurance can be designed to cover the following, up to a certain amount:
- Lost income: Includes estimated profits you would have made if your business hadn’t experienced a disaster.
- Payroll costs: This helps ensure your employees get their paychecks even if disaster hits your business.
- Fixed expenses: This includes your lease or mortgage payments and utilities.
- Taxes. Let’s say your small business suffers damages that force you to temporarily close right before your tax payments are due. BI can help cover the costs.
- Mortgages or rent: After a fire destroys parts of your restaurant, it needs to be rebuilt and will take weeks to do so. BI insurance can help cover your mortgage payment or lease.
- Relocation costs: If you need to temporarily move your operation while the original location is being repaired, BI coverage will help with the extra expenses involved.