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How Business Interruption Insurance Can Ease Your Clients’ Pain

Your clients depend on you to make sure they have all the coverages in the world.  While we, as insurance professionals, know that this is impossible, the client does not.  So, you need to make sure to solve all of their pain points so you can land the sale. One huge pain point that you may let slip your mind is business interruption.  What will you client do if there is a claim and they can’t operate for a period of time?  How long would they be expected to be without income?

Let’s say your client has a fire.  You know their property insurance policy covers this. What if it ends up taking 6 months or even 24 months to rebuild?  Your client will certainly have some critical employees that they want to keep, but the employees probably can’t wait around for six – twenty-four months not getting paid.  In addition, your client will still have normal operating expenses, like rent and vendor contracts, that they must still pay for. This is where business interruption comes in.

Making sure the business interruption endorsement is on your clients’ policy is arguably one of the best things you can do for them.  This endorsement provides coverage for a stated period of restoration, or how long it takes to begin operating again.  The claim payment will be calculated using net income plus normal operating expenses. This way your client can keep a little sense of normalcy while still adhering to their agreements and retaining good employees.

Unfortunately, not every insurance company offers this coverage with a liberal restoration period on their policy. The great news is that our ComStar commercial insurance package includes business income up to 12 to 24 months with an actual loss sustained coverage limit. There is a 72-hour waiting period, however, your client is covered for the actual loss sustained during the restoration period. Do what is best for your client and contact us today to get a quote on our unique property protection.

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