The Basics of San Francisco Business Interruption Insurance

Most business owners recognize the risk of suffering property loss due to a natural disaster such as fire, wind, flood, earthquake, etc. They typically purchase a package of property and casualty insurance policies that will cover the majority of the cost of repairing or replacing their valuable business property.

What many businesses overlook, however, is that even if their property insurance replaces 100% of their business property losses including facilities, equipment, furnishings and supplies, etc. they can still face substantial financial loss. Let’s say that your business experiences a fire. It may take months to repair the facilities and replace the damaged furnishings and equipment. Your company’s business operations can be suspended for a significant length of time, resulting in a substantial loss of income and profits. To get operations running again, you may have to take on added expenses in the form of renting a temporary facility and/or equipment while the business is being repaired.

Fortunately, there is a solution to this. Business Interruption Insurance, sometimes called business income protection insurance, provides companies with the funds needed to offset the loss of income during the period a business is forced to suspend their operations. To receive coverage, these conditions must exist:

• There must be a direct physical loss of or damage to your business property
• The direct physical loss must take place at the premises described in the policy
• The loss must be the result of a covered peril. Examples may be water damage from a flood, smoke damage from a fire, or structural damage from an earthquake.
• There must be a necessary suspension of company business due to the damage to or destruction of company property.

In order to run a business in and near San Francisco, you must face the risk of a natural disaster, especially earthquakes. At Cal-Nevada, we understand these special risks. Our San Francisco Business Interruption Policies can help you through a shutdown due to a covered catastrophe. In addition, we offer San Francisco Earthquake Insurance, which can be a critical piece of protection to get your San Francisco business back up and running after a natural disaster. Please contact us for more information at (866) 670-5948.