Minimize Monetary Loss After a Fire With the Right Coverage

10/27/2021 (Permalink)

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With The Right Coverage, You Can Minimize Your Financial Losses After a Fire

Any sort of interruption is bad news for your business, but the longer a disruption lasts, the more revenue you lose. Fire restoration often takes longer than cleaning up after a flood or other disaster, as fires often result in three types of damage: burning, smoke damage and water damage. As a result, if your building catches fire, you stand to lose three times what one would lose due to a flood, burst pipe or secondary smoke damage. To minimize monetary loss as much as possible after a fire, invest in interruption insurance.

What Is Interruption Insurance?

If you own a business in Lighthouse Point, FL, there are three types of coverage that you should invest in, at a bare minimum:

• General liability
• Property insurance
• Business interruption insurance

General liability and property insurance should cover losses of personal property, structural damage and injuries. However, though those expenses are bound to great, they likely won't make up a majority of your financial loss.

Depending on how long it takes your local fire restoration team to clean up the damage and get your building back to like-new, your business may be closed for months. Not only will you lose any revenue you could have generated during that period, but also, it will take you time to reestablish your brand with your customers, and possible additional marketing efforts. Interruption insurance can cover the loss of income suffered by the slowdown or suspension of your operations, as well as the costs of reestablishing your business post-disaster.

Some interruption coverage policies cover extra expenses such as rent and moving fees for when businesses are forced to relocate due to the fire damage. Though not necessary, this type of coverage can significantly help after major structural damage. In general, interruption policies are good for as long as it takes for businesses to become operable again.

A commercial fire can result in serious structural and monetary damage to any business. To minimize your damages, invest in interruption insurance.