[Footnote 1]: The purpose of business interruption insurance
"is to compensate an insured for losses stemming from an interruption of normal business operations due to damage or destruction of property from a covered hazard, thus preserving the continuity of the insured's business earnings by placing the insured in the position that it would have occupied if there had been no interruption" (11 Couch on Insurance 3d ).
In some cases, lease agreements require lessees to continue paying rent even if the premises become unusable, making business interruption insurance
a near necessity to ensure adequate funds.
A survey by the National Association of Insurance Commissioners found that only 35 percent of small businesses (defined as firms with fewer than 100 employees) have business interruption insurance
. Without it, businesses are doomed.
Ask an experienced insurance broker about deductibles in business interruption insurance
. They'll tell you there are none, but there is a waiting period.
The inclusion of business interruption insurance
can make packages quite attractive, Worters points out.
For risk managers, insurers, brokers, claims preparers and adjusters, and for the corporate owner either considering endorsements or preparing a claim, this book is a guide to better understanding business interruption insurance
, in the purchasing process, in risk assessment, or during the claims and dispute resolution process.
Two of those new newsletters focused on life in the aftermath of September 11-NewsRx's Bio-Terrorism.Info Database and Weekly Report and HCPro's Healthcare Security and Disaster Alert-and two of the latest launches similarly mine a niche of the publishers' established markets: LexisNexis/Mealey's monthly Mealey's Business Interruption Insurance
and BNA's Wage Hour & Leave Report.
"People should have had business interruption insurance
even before September 11," Wood stresses.
Keep in mind that you may save money on your monthly premiums by using a business owner's policy (BOP) which charges one premium for several different types of coverage, including property, liability and business interruption insurance
Mealey Publications (King of Prussia, PA) will begin the publication of Mealey's Litigation Report: Business Interruption Insurance
, a monthly report designed to provide companies and litigators with an "essential tool" to cover this area of litigation, in December.
11 tragedies "pose a great challenge for the insurance policyholders and insurance coverage litigators." The company said the report will deliver the latest business interruption insurance
news with both original stories and court documents.
Ecclesiastical Insurance, which insures many small family-run hotels in rural areas, said that hotels would be able to claim only if they had taken out business interruption insurance
with a denial of access cause.