What Is Covered When A Business Experiences Fire Damage?

11/23/2018 (Permalink)

Fire damaged studio in Ridgefield,CT

Fire Insurance Coverage

If your business in Ridgefield,CT, suffers fire damage, it is important to understand what is covered and what is not under interruption insurance. As you begin the fire restoration process, you can expect your insurance to cover these three things:

1. Any Loss Sustained

Any property physically destroyed as a result of fire damage is typically covered by interruption insurance. The insurer may also pay the insured if he or she sustains an interruption of business that leads to a financial loss. Generally, the insurer will pay the dollar amount of damage occurred but will not exceed the limit that is in the policy.

2. Taxes Your Business Owes

Despite the fact that your business has suffered from fire damage, you will still be required to pay taxes, regardless of the situation. It is wise to pay taxes promptly and not go into debt. Business interruption insurance can help pay those taxes on time and keep you in good standing with the IRS.

3. Your Monthly Loan Payments

Between rental space and equipment, most businesses have some type of loan they are paying off in order to keep things going. Insurance can help you keep up with those monthly payments so you do not fall behind. This is important because falling behind on loan payments could affect everything from your payroll to your building and resources — or even the viability of the business itself. Therefore, it is wise to stay on track and do whatever it takes to make those payments in a timely manner to avoid failure.

Interruption insurance can save your business from going under when you experience damage from a fire. It covers any loss you sustain in the fire, it covers your taxes, and it will make your monthly loan payments, so you can stay on track and get back on your feet as quickly as possible.