How Insurance Helps a Business Survive a Fire

9/27/2021 (Permalink)

Whether or not a company has interruption insurance, the business always prefers to get back to work as quickly as possible.

Few events are more disruptive to a business than a fire. In fact, the National Fire Protection Association estimated that fires, both residential and commercial, resulted in more than $25 billion in property damage in 2018. It's easy for an individual fire to cause damages to property well into the tens of thousands of dollars. Therefore, it is vital that a company protects its assets with the right insurance coverage. A standard commercial insurance policy, interruption insurance, and extra expense coverage all play a role in safeguarding a company from a catastrophic loss. In most circumstances, the standard policy will cover much of the fire damage and its cleanup.

The Role of Business Interruption Insurance
After a fire, many companies are unable to operate for a period of time. This leaves the business without the ability to sell products and services, essentially drying up its revenue stream. At the same time, though the company is inactive, many bills keep coming. Interruption insurance helps in the following ways:

It replaces some or all of the income lost during an interruption
It continues payments for a specified period of time or until the company is operational again
It enables a company to pay bills and maintain its credit rating

Another insurance product, extra expense coverage, pays for added costs that allow a company to keep operating. These extra costs often allow a company to keep earning revenue.

The Role of Fire Restoration
Whether or not a company has interruption insurance, the business always prefers to get back to work as quickly as possible. A local fire mitigation franchise in Broken Arrow, OK, works efficiently to restore a property to good shape again. Certified technicians take care of soot and smoke damage, eliminate smoke odors, and clean and disinfect impacted surfaces. A professional team can handle all aspects of the recovery process and return the building to its owners.