Small Businesses May Face Coverage Gaps

Many local small business owners face a major gap in their insurance coverage.  A national survey conducted in 2005 among small business owners shows that many small businesses have inadequate business-interruption coverage.

Business-interruption insurance pays for lost income should a firm be temporarily closed or should its income be reduced or diminished due to a covered loss. It also pays for operating expenses that continue after business has come to a temporary halt—such as rent, salaries and operating at another location.  Three out of four respondents either don’t have business-interruption insurance, or don’t know what it is.

From a financial security standpoint, business-interruption coverage is a key protection package.  Standard small-business insurance—known as business owners’ policies, or BOPs—cover loss of income and extra expenses for 12 months. BOPs often provide 60 days of coverage for ordinary payroll.  BOP eligibility is typically based on the type of business, size of building, and/or revenue; eligibility varies from one insurer to another, but more than half of all commercial risks are eligible

Denali Alaskan Insurance is a Trusted Source® Agency, part of a national organization dedicated to providing top quality home, auto and business coverage to clients.  Call the business insurance experts at Denali Alaskan Insurance (257-1625 in Anchorage, or 800/770-1825 from anywhere else in Alaska) to help with your BOP coverage or any other commercial needs.