Business Interruption & Extra Expense Insurance
Business interruption insurance is for companies that have been struck by a natural disaster. Think Sandy, Katrina, or the World Trade Center attack. It covers profits lost while the business is closed during rebuilding and can often mean the difference between staying in business and closing the doors for good. It should be structured to be in force for a long-term event; it’s important that the coverages are not based on a short-term scenario.
Business interruption covers lost revenue, but will not cover a situation where the business is not entirely shut down. For example, the “extra expense” of renting a new space while they are rebuilding should be considered. JWA makes sure that all business interruption policies have this included or added as rider.