What’s the period of indemnity?
Basic business interruption coverage usually allots 12 months of compensation.
In any of the scenarios above, you’ll need to consider your period of indemnity: basic business interruption coverage usually allots 12 months of compensation, but that may not be enough for your operation to fully recover. This is a particularly pertinent concern for manufacturers.
For instance, it may only take you six months to restore your property, but when you reopen you’re not operating at the same level as you were before the loss. In some cases, it takes a lot longer to restore your revenue stream to its former glory, and you may need to shell out extra costs (think public relations and advertising) in the meantime to summon your customers back to your business.
In this case, you’d want an extended period of indemnity – an endorsement to your policy that can help cover those expenses that aren’t generally included under a basic policy. Fortunately, this is something your broker can help you with.