NEW TO TEXAS BUSINESS INTERRUPTION INSURANCE
Texas Business Interruption Insurance is a critical coverage for the new to Texas business owner. This coverage can make the difference between major losses and indemnification during down time while the business is closed and unoperable at a time of claim processing. This coverage may be available as an addition to the Commercial Property policy, the Commercial Multi-Peril Policy or the Business Owner Program. Please review this website’s Commercial Property page for clear information concerning the different Commercial Property types and coverages, the Commercial Multi-Peril Policy is a single policy package including Commercial Property, Commercial General Liability, Inland Marine coverage for tools, equipment, inventory and in some cases Commercial Auto Insurance. The BOP or Business Owners Program provides Commercial General Liability, Commercial Property whether tenant occupied or owner occupied.
a. Texas Business Interruption Coverage benefits includes compensation for lost of income, some operating expenses when the insured building is untenantable or deemed to unsafe to occupy. It is important to note this coverage must be triggered by a covered peril. Be sure this coverage is added where applicable and available to all relative policies owned by the business.
b. Texas Business Income Coverage is net profit or loss before taxes and continuing normal operating expenses, including payroll. Claim payments under this coverage are determined by prior sales volumes and expenses based on the financial records of the business.
c. Texas Extra Expense Coverage is available apart and separate from other Business Interruption Coverages and depending on the business operation may be a “stand alone” coverage, agent assistance can help with this determination. This coverage is intended to pay for expenses exceeding normal monthly expenses being spent to restore and continue business either at the main location or a temporary location.
d. Texas Contingent Business Interruption Coverage pays for lost income due to a third party suffering loss and such loss directly effecting the insured’s business, examples could be a main customer being effected by fire and unable to accept and process the insured’s delivery of product produced and sold by insured for a sustained period.
e. Texas Civil Authority Coverage applies to a municipality or government restricting or denying the insured access to the insured property because of a covered peril loss at a third party location.
Other coverages that may require consideration and more detailed explanation are; Building occupied by the insured coverage, Newly acquired or constructed building coverage, Employees personal property coverage, Off premises property coverage, Crime coverage and Boiler and Machinery coverage.
At Texas Commercial Business Insurance we really do make insuring easy! 866-222-0853