Business Interruption Insurance

Business interruption insurance replaces lost income (and potentially other expenses) when a business is closed due to a disaster that results in physical damage to the business such as a fire or storm. Typically, this is not a standalone policy, but rather is an add on to a commercial property policy or part of a package policy such as a Business Owner’s Policy (BOP) or Commercial Package Policy. (CPP)

It is important to note that Business Interruption policies typically have specific exclusions. For instance, even all-risk insurance plans tend to have exclusions for losses due to viruses or bacteria. This includes instances of the government mandating (Civil Authority) a business close due to a pandemic. Since the root cause is a virus the policy would not be reimbursed for the resulting lost income.

Coverage Benefits

Depending on your policy your coverage may include:

  • Fixed Costs – operating expenses and other incurred costs
  • Extra Expense – reasonable expenses outside the norm that the business incurs to continue operations while repairs are made.
  • Employee Wages – covers wages of employees while business is shut down or unable to operate
  • Profits – typically based on the month prior to the loss
  • Taxes – when taxes are due, they are expected to be paid – even if your business is shut down.
  • Loans – while some banks may work with you regarding payments while your business is shut down, it is not a guarantee and likely repayment will continue to be do even if you are not generating income.
  • Temporary Location – some policies cover costs of having to move and operate from a temporary location
  • Training Costs – if old equipment needs to be replaced due to the claim event, the policy may include costs to train employees on new equipment
  • Civil Authority – A covered business interruption event causes the government to mandate a business be closed which results in financial loss. For example, if the street is closed due to damage caused by a tornado.

Additional Resources

Contact Us

Craig Concklin
Craig Concklin

Craig Concklin
President

Craig Concklin, CIC, a graduate of Denver University and an esteemed insurance professional since 1981 became an owner of Concklin Insurance Agency in 1993. With vision and forward thinking, Craig Concklin has tripled its sales to $22 million. The firm’s sustained investment in state-of-the-art computer systems, integrated accounting and marketing programs, and creation of national insurance programs for various industry groups has made Concklin an industry leader. Craig’s knowledge and stellar reputation in the insurance industry continues to benefit his clients and enhance the presence of Conklin Insurance in the marketplace. He is currently a Pekin Insurance Board Member.

craig@concklin.com

Michael Mormando
Michael Mormando

Michael Mormando
Insurance Agent

Michael, originally from New York and a graduate of the University of Denver, enjoyed a long tenure in the hospitality industry as a restaurant owner/operator, prior to joining Concklin Insurance. Michael gained a unique perspective of understanding and appreciating the ongoing difficulties in what today’s economic environment brings to everyday business people. Starting his insurance career, Michael felt his natural customer service talents would work best assisting business owners in managing their insurance programs effectively to ensure proper coverages and very competitive premiums available through Concklin Insurance.

michael@concklin.com

Michael O'Donnell
Michael O'Donnell

Michael O'Donnell
Insurance Agent

Michael O’Donnell joined the Insurance Industry after graduating from Eastern Illinois University with a Finance Degree in 1992 and became a producer at Concklin Insurance Agency in 1995.  Mike specializes in insuring restaurant and Franchise business and has worked with franchisors to establish proper insurance requirements are established for their franchisees. He takes a hands-on approach to insurance and understands his clients’ diverse needs. Mike provides the caring expertise required to review and customize an insurance program that provides his clients with excellent coverage while balancing budgetary concerns.

mikeo@concklin.com