A fire in a commercial building is likely to have repercussions for tenants of the building long after the fire fighters have done their job. An enterprise that is forced to relocate temporarily while fire damage is repaired or the premises are rebuilt is likely to suffer serious interruption to business activities. As protection from the risk of business interruption, the company should include business income coverage as part of its New York business insurance.

Take the example of a fashion boutique that leases retail space in a commercial building. It’s likely that the owner of the boutique has put a lot of effort into finding the perfect location to set up shop. The style of the building, the size of the retail space, the types of merchandise sold by nearby shops and the amount of foot traffic passing the store are among the factors that will have influenced the decision to lease the space.

A fire in the shop that forces the boutique to close and move into alternative temporary premises is likely to have a serious impact on the business. What is the chance of the boutique owner finding a retail space that is comparable with the one that took so long to find?

Business income coverage compensates the boutique owner for income lost when the boutique has to vacate its shop because of an insured disaster. Extra expenses coverage compensates the boutique owner for additional costs of keeping the business operating in temporary premises while the original shop is restored. The boutique owner needs to provide details of business activities before and after the fire to support claims for business income and extra expenses compensation.

Business income and extra expenses insurance are valuable New York business insurance products. Business owners should consider purchasing these insurance products if they want to ensure business continuity after a disaster. With Schmutter, Strull, Fleisch, Inc., you can get the coverage you need for your small business. Contact us today for more information!

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