What Is Business Interruption Insurance? (Tennessee)

OK, so there are a broad range of business insurance options that cover a wide variety of risks, right? And I gotta say many business owners are unclear on the function of business interruption insurance. So to put it simply, uh, business interruption insurance basically replaces income that you would have earned if something prevents you from being able to engage in normal business operations. So in other words, if a tornado, say, destroys your storefront, oh, that'd be terrible, but if that happens, and as a result, you're unable to sell goods and generate income, then business interruption insurance will replace some or all of that income. So there are two things to keep in mind here. First, uh, the coverage will only replace income up to the total coverage amount on the policy. So a $200,000 policy will pay up to that amount and no more. Second, uh, business interruption insurance only triggers if the cause of the interruption, such as a fire, is covered by the policy. It's got to be covered. So if you want your coverage to be sound, the best thing you can do is sit down with your insurance agent and make sure all potential causes of interruption are included in your policy before you sign it.

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