Insurance Definition Service Interruption
Business interruption insurance ensures that you have the funds to pay the taxes you owe even if your business is no longer bringing in revenue.
Insurance definition service interruption. Service interruption if included within the policy a service interruption extension typically provides business income coverage arising from direct physical loss damage or destruction to electrical steam gas water sewer telephone or any other utility service s transmission lines and related plants substations and equipment. Business and contents insurance normally takes care of physical damage and losses but business interruption insurance helps with financial losses after physical damage or loss. Business interruption insurance also known as business income insurance is a type of insurance that covers the loss of income that a business suffers after a disaster the income loss covered may be due to disaster related closing of the business facility or due to the rebuilding process after a disaster. While it s often forgotten and neglected business interruption is a very valuable type of coverage.
Business interruption insurance is insurance coverage that replaces income lost in the event that business is halted due to direct physical loss or damage such as might be caused by a fire or a. At the end of the quarter the business still needs to pay estimated taxes on the revenue. Financially protect your business with business interruption insurance coverage from the hartford. This coverage can help supplement a business income if a business can t operate due to a covered cause such as a fire or other disaster.
Property insurance policies typically consider loss from an off premises service interruption to the insured s described premises an excluded peril. Some independently filed property insurance policies may provide direct damage coverage usually a low limit such as 25 000 but nothing for time element loss. Business interruption insurance or business income insurance can help your business weather a loss that forces you to close your doors such as a fire vandalism natural disasters and equipment damage. Utility service interruption coverage coverage for loss due to lack of incoming electricity caused by damage from a covered cause such as a fire or windstorm to property away from the insured s premises usually the utility generating station.
Typically not a separate policy it is sold as an addition to a main policy such as a comprehensive package or commercial property insurance. Also referred to as off premises power coverage.