As a business owner, your job can be both exciting and risky. Sometimes it's daunting to know what Kentucky commercial insurance is necessary for your operation. Instead of going it alone, consider using a licensed professional to help you for free and find business interruption coverage that works.

A Kentucky independent insurance agent does the shopping for you at no additional cost. They'll review your policies for accuracy so that you know you're getting the right coverage. Connect with a local expert for custom quotes in minutes. 

What Is Business Interruption Insurance? 

In Kentucky, your business interruption insurance can help you stay running during a covered loss. If you have to shut down for some time, this coverage will keep you operational. 

• Business interruption insurance: Pays for regular business expenses in the event of a covered loss. This coverage will help your company avoid closure.

Leading risks to US businesses from 2018 to 2021

Business interruption losses are the number one threat to most businesses in the US. This makes having the right coverage all the more important.

What Does Business Interruption Insurance Cover in Kentucky?

It's crucial to understand what your commercial insurance will cover in the event of a claim. Take a look at what's typically included under business interruption insurance:

• Income: This will be based on what your business would normally have brought in historically during the same time. 
• Payroll: Any payroll you usually pay will be taken care of under this coverage.
• Taxes: If your loss occurs during tax season, you'll have coverage for business taxes due.
• Rent or mortgage: If the building you occupy is unusable, the rent or mortgage will be paid by this coverage. 
• Relocation: If you have to move to a temporary location, business interruption will help pay the bill.
• Loans: Any loan payments you have incurred are part of this regular expense.

The Cost of Business Interruption Insurance in Kentucky

Your commercial insurance costs will vary and depend on your daily operation, history, and personal data. Carriers will also look at outside factors like weather claims and crime rates. Check out which catastrophes are most common in Kentucky:

Kentucky natural disasters that will impact your premiums:

1. Severe storms and lightning damage
2. Flooding and water damage
3. Wildfires and residential fires
4. Tornadoes
5. Burglary and other property crimes

The number of natural disasters in the US by type (in 2019)

If you have to halt your operation due to a covered loss, the right policy could be a real lifesaver. Business interruption insurance can help keep your company afloat during a tough time.

Business Interruption Insurance Exclusions in Kentucky

Every commercial insurance policy will come with a list of claims it will not cover. Check out some standard exclusions that would apply to your Kentucky business interruption coverage:

• A pandemic: When a pandemic occurs, neither your business interruption nor any other commercial policies will provide coverage for closure.
• Flood insurance: If you don't currently have a flood insurance policy, you won't have coverage for flooding under your business interruption coverage.
• Earthquake insurance: If you don't have earthquake insurance before your business is compromised, interruption coverage won't cover damage for this.
• Undocumented income: If your business is used to dealing only in cash with no paper trail, business interruption coverage will only apply to expenses that can be proved. 

Indemnity Period for Business Interruption Insurance in Kentucky

There are two ways to protect your business in Kentucky. One option is through a preselected limit of coverage. The second option is by a preselected period. Your business interruption insurance will go by a time frame called the indemnity period.

• Indemnity period: The amount of time a specific coverage will pay out a covered loss. 

Business Interruption Insurance and Extra Expense Coverage in Kentucky

When you have a claim that interrupts your operation, there could be more costs than meets the eye. Your business interruption insurance will come with an option to add coverage for extra expenses.

• Extra expense coverage option: This will pay for additional costs outside of your regular business expenses that are caused by a covered claim.

How to Connect with an Independent Insurance Agent in Kentucky

In Kentucky, you'll have to account for several risk factors as a business owner. It can be challenging to know the right coverage when you're not using a trained professional. Fortunately, a trusted expert can review your business interruption insurance and more for free.

A Kentucky independent insurance agent has access to multiple carriers so that you're met with the best coverage and price. They'll even do the shopping for you at no additional cost. Get connected with a local adviser in minutes and start saving today.