Fire disasters are some of the worst things that can happen to a business since it doesn’t only harm people but also destroys their workplace.
Even if you are not hurt after a fire disaster in your office, you still need to work, and regardless of the reasons, you are going to lose money if you don’t. What can you do if you lose income after a fire disaster in your company?
Although many don’t know, commercial property insurance policies can sometimes cover loss of business revenue if some circumstances are met. Here is what you need to know about insurance coverage after going through fire disasters.
What Can Commercial Property Insurance Cover After a Fire Disaster?
Insurance can cover many things depending on how severe the fire disaster is in the first place. Small issues are not often that important to insurance companies, so they don’t get you that much compensation for them. However, extreme fire disasters are something people can just ignore since they could injure the people working at that office or commercial building.
Depending on your work field, you may not be able to work if your supplies or working equipment are damaged after the fire, so you can expect insurance coverage to help you with that. The same happens with damage to furniture and inventory.
Insurance coverage for fire disasters can often cover loss of income thanks to Business Income Coverage (BIC).
What Is Business Income Coverage?
As its name suggests, BIC’s main function is to help people who have lost revenue after a fire disaster or any other accident in their workspaces. Business Income Coverage works as a form, so you need to fill it out and send it to your insurance company if you want to apply for it.
While this form excludes some operating expenses, BIC is still a decent alternative for people who won’t be able to work for a time. Naturally, this system has some rules you need to follow for it to help you.
The first thing to consider about BIC is you only get coverage for the waiting period insurance companies to think you need to go back to work again, and they won’t give you any more funds even if you are not ready after that time. That period is often 30 days.
It’s also worth noting you need to prove you can’t work or get that revenue in any way, and that includes not having a second location to work. If the insurance company considers you could still work from another place, it won’t give you coverage for the fire disaster.
Some exceptions can also make you not eligible for BIC, and they are mostly related to the source of the fire disaster itself. You, for example, can’t get income coverage if the problem happened due to extreme weather events, epidemics, or diseases.
Wrapping Up
Business Income Coverage can be an excellent tool for you to handle yourself until you can go back to work again, but remember insurance companies won’t give you this after the waiting period for you to make your office ready again. Try to get that done as soon as you can!
