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Business interruption coverage could mean the difference between staying afloat, or sinking.

Consider the following scenario: the business next door that specializes in fire extinguishers catches fire, and the fire reaches into your own business. Firefighters manage to put the blaze out before it causes any serious damage to your building, but it’s clear that you won’t be able to utilize this space for a number of months. In addition, your merchandise and equipment has been damaged! Setting aside the irony of your neighbor’s situation, how will you replace your earnings as you wait for everything to be rebuilt/replaced? Learn about business interruption coverage, and how you can earn your wages if your business has to shut down for a period of time.

How much coverage do you need?

Here are some questions to ask before you purchase your business interruption coverage.

• How long would it take to get your business up and running again?
• How likely is it that a covered loss will occur? (For example, if you live in California, earthquake frequency is one consideration.)
• How well protected is your building if you rent?

What business interruption insurance covers.

Business interruption helps protect your lost earnings if your business has to shut its doors for some time. This means that if you lose business and income as a result of the loss, you can typically recoup those losses. This kind of coverage may also help pay any extra expenses to keep your business running because of the loss.

Business interruption coverage is a good policy to keep your business afloat, especially if you are dependent on foot-traffic for the majority of your business’ income. When looking for the right business owners insurance policy in Pasadena, CA that will meet the needs of your specific business, contact the independent insurance professionals at Massive Insurance.