How Much Revenue Can a Fire Cost a Business?
How Much Money Can a Fire Cost a Company?
According to the National Fire Protection Association, the total cost of fires in the United States in 2014 was $328.5 billion, with expenditures totaling $273.1 billion and losses adding up to $55.4 billion. One of the best ways to limit the amount of revenue a fire can cost your business is to obtain interruption insurance as an endorsement on a commercial property insurance policy. Property insurance policies cover losses caused by covered perils such as a fire, while business interruption coverage offsets lost income during the restoration period.
Here are several ways a fire can cost any business a substantial amount of revenue.
• Property and equipment losses: A fire can damage or destroy the structure of your commercial property as well as any or all of its contents. Standard business insurance policies cover these types of losses.
• Lost business during restoration: Interruption insurance can help to offset the loss of net income, meaning net profit and loss before taxes. These calculations also include payroll.
• Expenses during restoration: Fire restoration specialists may identify additional losses during the restoration process. It may not possible to continue to do business during the restoration period.
Keep in mind that you will probably need to add endorsements or additional coverage to your business insurance policy to be able to rely on coverage for business interruption. Extensions for prolonged restoration are often available in increments of 30 days up to a total of 720 days with the purchase of optional endorsements.
Ask a business insurance provider about the best interruption insurance coverage for a commercial property in Wilbon, NC. You may also be able to obtain additional coverage that could lower your expenses in the event of a fire. Work with your commercial insurance provider to find a fire restoration service that can complete the work during the period of time covered by an interruption endorsement.