When a natural disaster occurs, having business interruption insurance will help you replace the income loss of your business.
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 more information about how to obtain the appropriate amount of protection for your business, call Popular Risk Services2 at 787-731-6900.
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.