Loss due to business interruption

In the event of a natural disaster, having business interruption coverage¹ will help you replace your business’ lost income. It also covers operational expenses such as incurred payments for contracted services even if the business is temporarily closed.

For business interruption insurance to apply, the business must have suffered physical damage (direct damage) to the facilities covered by the business’s insurance policy.¹ The insurer will require evidence to determine the loss of income. For this determination, insurers take the following elements into account:

• • Length of interruption (date on which operations resumed)
  • Details of daily sales over the last months
  • Copies of monthly sales and service tax (IVU) reports for the last years
  • Copy of the last audited financial statement
  • Copy of the last income-tax filing
  • Interim financial report
  • Evidence of rent payment for the last months
  • Disclosure of additional expenses incurred, with invoices and evidence

These policies have what is known as a waiting period, which is usually between 48 and 72 hours from the date of the occurrence until the coverage comes into effect. If you would like to find out how to obtain adequate protection, please call Popular Risk Services² at 787.731.6900 or write to: popularrisk@popular.com.

This article is for informational purposes only and does not constitute an endorsement or guarantee of accuracy or applicability for any particular purpose. Neither Popular nor any of its affiliates, subsidiaries, or related companies shall be liable for any special, direct, or indirect harm stemming from the information contained in this article. Should you require further information or guidance on the subject of this article, you should always seek the advice of a competent professional of your choice.

¹Insurance products are not deposits, are not insured by the FDIC or other federal government agencies, are not insured by the bank, and may lose value.

²Popular Risk Services is an Insurance Producer duly authorized by the Insurance Commissioner’s Office to manage life, disability, miscellaneous, title, health services, and variable insurance in Puerto Rico.