How Much Revenue Can I Lose After a Fire Damage?
What Happens After a Fire Emergency?
Fire is one of the most damaging events that can occur to a commercial property. The risk of fire has increased over time, with statistics showing that on average, one out of every three businesses will suffer a fire sometime in their existence. If this happens to your business, it is important to contact an expert restoration company so they can help you get back to business as soon as possible.
All businesses have a fire safety plan, but what happens after a fire emergency?
A fire damage incident can be a disaster for your business. The devastation of losing all your inventory, important records and equipment can be devastating, but there is a silver lining: you can recover from it.
However, the cost of recovering from a fire damage event will depend on several factors such as how quickly the fire was detected, how much of the building was affected by smoke and water damage, what types of materials were lost in the fire and whether there is insurance coverage to help pay for costs associated with reopening your business.
A good way to determine what type of recovery time you'll need is by looking at similar businesses that have had similar experiences after being damaged by a fire emergency.
This article covers business interruption insurance and how it can help your business.
Business interruption insurance can help your business recover when it is hit by a disaster. In this article, we'll explain what business interruption insurance is and how it can help your business get back on its feet quickly.
Business interruption insurance (also called "business income" or “re-establishment” coverage) pays for lost profits when disaster strikes. If you have a fire and cannot operate for several weeks or even months, this type of coverage will reimburse you for lost income as well as expenses related to getting back up and running—such as hiring temporary staff, renting office space in another location, purchasing inventory, etc.
Explain the situation from a business’ perspective and what can cause a business interruption and additional expenses.
The best way to explain business interruption insurance and what can cause it is to start with the basics. Business interruption insurance is designed to cover lost revenue, extra expenses, and other costs incurred by a business due to an insured incident. This could be anything from a fire or storm damage that destroys your property, or even something as simple as losing access to your building because of road closures caused by an accident.
Business interruption insurance follows a different timeline than general property coverage. Property coverage typically begins when you first file your claim with your insurance company and ends once you’ve completed repairs or have decided not to rebuild on the same site anymore — either way, at that point you no longer need the protection of any more money coming in through insurance payments (unless there are further issues regarding property ownership). With business interruption coverage however, payments are based on how much profit was lost over time after being unable to operate without access inside their building(s).
The key difference here between these two types of policies has everything about timing involved: one pays out during certain periods while another does so only during certain periods; one covers costs before/after whereas another covers costs only during said periods; etcetera – but both will result in compensation if needed!
If your commercial property suffers fire damage, an expert restoration company can help you get back to business.
Business interruption insurance is a form of property insurance that covers the costs associated with temporarily ceasing to operate due to fire damage or other covered causes. It can be purchased in addition to general commercial property insurance, or as a standalone policy if you have no other coverage. Business interruption insurance typically includes:
- A cash payout for lost revenue and operating expenses resulting from the destruction of your property
- Financial assistance for hiring new employees to restart your business as quickly as possible
- Protection against third party claims related to loss of income due to legal proceedings
If you’re curious about how much revenue your business can lose after a fire damage, we can help. We can provide an estimate based on the type of business you run and how much time it will take to get back up and running again. If you need help with fire restoration services, give us a call or fill out our contact form today!