Business Interruption Insurance

One fire, one power outage, and your operation will shut down until you get the place up and running. Are you ready if such a disaster happens? Not only for the damage to the property but also for the revenue you’ll lose and the expenses that still need to be paid?

Sinclair Risk & Financial Management will provide you with Business Interruption insurance protection and the specific amounts your operation needs to help normalize your financial position should you be forced to close due to a loss.

Here are some of the key areas we’ll address:

  • Coverage timeframe – necessary to determine the business interruption loss. Even once you get back up and running, repairs may still be underway.
  • Deductible: Usually between 24 to 72 hours. Depending on your business, this may not work for you if a loss occurs before the weekend — you’ll lose significant revenue because you’ll have to remain close while repairs are being done.
  • Loss of revenue. What are your annual sales and what percentage should be covered?
  • Ordinary payroll. Even if business activities are temporarily stalled, operating expenses and other costs such as rent, taxes, interest on bank loans, payroll costs, etc., can’t go unpaid. How much do you need to cover these?
  • Extra expenses: Perhaps you’ll move the business to a different, temporary location, what type of extra costs are involved?
  • Contingent Business Interruption: Do you rely on someone else for supplies? What happens if there is a disruption, could you deliver your services or goods? Or, are you dependent on another business nearby for clientele and if that business experiences a loss, will your establishment suffer? Will you lose income?

We look at the whole picture when reviewing your risks.
Give Sinclair a call at 203.265.0996, email us, or return the form on this page to discuss your coverage needs.