Business Interruption Insurance in New HampshireWhat is Business Interruption Insurance?

When people think about insurance, they often think about protecting against physical damage, like to an office or warehouse that is damaged in a fire.  Though the building needs coverage, so does the financial consequences of such a loss - like the loss of income that can occur when such a tragedy occurs.

Disasters can have lingering effects on a business long after their immediate impact is over. Fires, storms, burglaries and other incidents can leave a business financially devastated by loss of revenue that may last for weeks or even months. 

Business interruption insurance, also referred to business income coverage, can help New Hampshire businesses survive such stretches should disaster strikes.

A typical Business Interruption policy may provide coverage for the following:

1.  Loss of revenue that would have been earned if the covered incident did not occur

2. Normal operating expenses, like payroll and taxes

3. Relocation expenses of moving business to temporary location, like moving and additional rent

What New Hampshire Businesses Need Business Income Insurance?

Many businesses in New Hampshire can benefit from the protections that business income insurance provides. The following are just a few kinds of businesses that might benefit from this type of insurance:

• Restaurants and bars, which could have fewer patrons after a disaster

• Hotels and motels, which could need months to rebuild after a disaster

• Manufacturers, which could not have products for sale immediately after a disaster

• Retail stores, which could get fewer visitors after a disaster

Almost any business that couldn’t afford to pay the bills while rebuilding should talk with a knowledgeable insurance agent, like HPM Insurance, to find out whether this coverage is appropriate.

What Sorts of Perils Are Covered by Business Income Insurance?

Business income insurance policies generally cover perils covered by commercial property insurance policies. For example, a business income policy may cover revenue decreases that are caused by fires, windstorms, electrical surges and other physical disasters. Exactly what risks are covered depend on a particular policy’s terms and conditions.

Policies don’t cover revenue decreases that result from bad business decisions or shifting market forces. These are risks that come with operating a business and not uncontrollable disasters, which is why they usually aren’t covered.

How Long Does Business Income Insurance Provide Payments For?

How long a business income policy will pay on a valid claim depends largely on the kind of policy. There are three broad kinds of policies available to businesses in New Hampshire:

• Standard Business Income Policies, which frequently provide payments until operations resume

• Extended Business Income Policies, which frequently provide payments for a specific period after operations resume (e.g. 30, 60 or 90 days)

• Contingent Business Interruption Policies, which frequently provide payments if a key supplier suffers from a covered disaster

Again, exactly how long a policy will make payment for depends on the policy’s specific language. Business owners can review options with an HPM agent to find out the particulars of a policy.  Regardless of the type of policy purchased, It is also critical to keep accurate records, backed-up, on past income and profits as this is what the insurance company will turn to when determining the proper amount of coverage in a claim.

How Are Business Interruption Policies Purchased?

Business interruption policies should be purchased through an experienced insurance agent as it is critical that the right amount of coverage be selected.

When determining how much coverage to buy, a business owner may complete a Business Income Worksheet that will reflect past, current and future profits and losses, as well as income and expenses, keeping in mind seasonal activity.

How Can Businesses Get Business Interruption Insurance?

For help getting business interruption insurance for your New Hampshire business, contact the independent insurance agents at HPM Insurance. Our experienced team has helped many businesses in the state find the right business income policy, and we’ll compare policies from multiple insurers to make sure you get the best one available for your business.