Business Interruption Insurance Nebraska Policy Information
Business Interruption Insurance Nebraska. Whether it's a fire, a tornado or some other disaster, you never know when an unexpected situation could occur - so it's always a good idea to take steps to protect your business. At least 25 percent of businesses that close due to a disaster do not reopen... but your business doesn't have to be one of them.
Getting business interruption insurance Nebraska coverage can help protect your business in case of a disaster or other loss.
Business interruption insurance Nebraska replaces business income after a property claim with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
What Does Business Interruption Insurance Cover?
Business interruption insurance Nebraska is a form of coverage that replaces business income lost following an event that interrupts the operations of the business, such as fire or a natural disaster. Business interruption covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt. Some policies also include extended business interruption coverage, which provides indemnity for additional losses that may occur after the property damage is repaired while the business is still regaining its customers.
Generally, the following are typically covered under a NE business interruption insurance policy:
- Profits. Profits that you would have earned (calculated from prior months' financial statements).
- Fixed Costs. Operating expenses and other costs still being incurred by the property.
- Temporary Location. Some policies cover the extra expenses for moving to, and operating from, a temporary location.
- Commission & Training Cost. Business Interruption (BI) policy essentially covers the cost of providing training to the operators of the machinery replaced by the insurer following the insured events.
How Much Coverage Do I Need?
Coverage amounts are unique to each business and depend on the amount of revenue a company generates. It's also dependent on risk. Check on how long recovery times are for businesses that have experienced common threats in your area. You should also consider your employees. If you want to keep them on payroll while your doors are closed, you must include that within your business interruption insurance Nebraska coverage amount.
Why Is BII Coverage Necessary?
NE business interruption insurance secures the actual revenue that allows you to pay your employees and support your family. While other types of business insurance protect the people and things you need to bring in revenue (including customers, employees, and equipment), BII protects the revenue itself. Unfortunately, many policy holders fail to realize the importance of insuring, not just their physical assets, but the income that is generated by those assets. Business interruption insurance can keep capital flowing in the event of disruptions. It can help you:
- Keep your business afloat if a loss forces you to close for a short time.
- Pay for lost net income and continuing expenses such as mortgage, advertising, taxes and salaries.
- Pay your relocation and advertising fees if you set up shop at a temporary site.
- Maintain business continuity.
How To Get Business Interruption Coverage
Business interruption insurance is not sold as a separate policy, but is either added to:
- Commercial Property Insurance - You can add an endorsement or rider to commercial property insurance that will extend the policy's coverage to business interruption losses.
- Business Owners Policy - Intended for small businesses, this type of insurance package policy includes property, liability and business interruption coverage.
- Commercial Package Policy - CPPs are flexible policies that can be customized with a range of options, including business interruption coverage.
Premiums will depend on the amount of coverage you need and the type of business you operate. For example, premiums for a business that has a higher risk of interruption from fire (such as a restaurant) would probably be higher than for a bookkeeping business. Make sure your policy limits cover a sufficient amount of time to rebuild your business. It can take more time than anticipated after a major disaster to get your business functioning again. Generally, there is a 48-hour waiting period before the coverage kicks in.
Information Needed To Make A Claim
Insurers will usually have the initial few days following the disaster excluded from their calculations, therefore put aside cash you'd require to cover the costs for that short period. Then furnish the insurer with enough documentation of your business' lost profits. You should save your records electronically or store printed copies else where, so you can still prove the losses even after your location is damaged.
Nebraska Economic Data, Regulations And Limits On Commercial Insurance
Are you an entrepreneur? Are you looking for a location to open up your startup or a new division of your existing business? If so, then it's imperative that you choose a place that offers an environment that's favorable to your specific industry.
Why? Because it doesn't matter how excellent and useful your products or services may be, if the location where your business is located doesn't offer an environment that's conducive to your specific industry, chances are you'll have a hard time achieving the success that you desire.
If you are thinking about starting a business in the state of Nebraska, understanding the current economic trends can help you determine if it's the right place for your operation.
Knowing what commercial insurance policies are required is also important so that you can ensure you are properly protected and that you are operating within compliance of the law. Below, we provide an overview of both of these crucial factors for entrepreneurs who are considering Nebraska for their operations.
Economic Trends For Business Owners In Nebraska
According to the most recent report from the Bureau of Labor Statistics, the unemployment rate of Nebraska was 3.1% in December, 2019, which is a total of 0.4% lower than the national average of 3.5% during the same time.
This rate held steady throughout most of 2019, and economists predict that it will continue to hold steady in the upcoming years. This is a good indicator for business owners who are thinking of setting up their operations in Nebraska, as they suggest that the workforce is strong, which is a direct correlation to the business climate.
While the entire state of Nebraska offers ample business opportunities for Nebraska, there are key areas that offer more favorable conditions for entrepreneurs. These locations, as in most states, include metropolitan areas and the regions that directly surround them, including:
- Grand Island
- La Vista
These regions have a large workforce and a higher median income than other areas throughout the state, which is good for prospective business owners.
Multiple industries are seeing gains in the state of Nebraska; however, there are certain sectors that are seeing more growth than others.
If you are thinking about starting a company in any of the following industries, NE offers great opportunities:
- Finance and insurance, as is indicated by some of the key players in these industries that are located in the state, including Mutual of Omaha and Berkshire Hathaway.
- Health care and social assistance, thanks to the University of Nebraska Medical Centers.
- Manufacturing, in particular agriculture; however, the manufacturing of various other products also do well in this state.
- Transportation; the Union Pacific Railroad, for example, provides a wealth of jobs for residents of the state.
These regions and the areas that surround them are home to numerous businesses, offer easy access to national markets, and provide a healthy and diverse workforce.
Commercial Insurance Requirements In Nebraska
The Nebraska Department of Insurance regulates insurance in NE. Nebraska mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Nebraska requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Nebraska also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Commercial Property Insurance
Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.
- Apartment Building
- Business Interruption
- Commercial Flood Insurance
- Commercial Property
- Condo Association
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Manufacturing And Mercantile Rental Property
- Mobile Home Park
- Non-Residential Building Operators
- Office Buildings
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
Rental property owners, real estate developers and property managers should keep an accurate survey of each property they own or that is in their care. This survey should include inventories of furnishings and equipment at those properties. These documents establish the extent of their insurable interest, facilitate the arrangement and placement of insurance and minimize controversy and confusion if a loss occurs.
Insurance coverage on property, general liability and professional or errors and omissions liability should be arranged and placed for every real estate and rental property risk.
The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.
The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.
This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.
There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.
These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.
Request a free Business Interruption Insurance Nebraska quote in Ainsworth, Albion, Alliance, Alma, Arlington, Ashland, Atkinson, Auburn, Aurora, Battle Creek, Beatrice, Bellevue, Bennington, Blair, Broken Bow, Burwell, Central City, Chadron, Chalco, Columbus, Cozad, Crete, Dakota City, David City, Fairbury, Falls City, Fremont, Fullerton, Geneva, Gering, Gibbon, Gordon, Gothenburg, Grand Island, Grant, Gretna, Hartington and Bridgeport, Hastings, Hebron, Hickman, Holdrege, Imperial, Kearney, Kimball, La Vista, Lexington, Lincoln, Louisville, Madison, McCook, Milford, Minden, Mitchell, Nebraska City, Neligh, Norfolk, North Bend, North Platte, O'Neill, Oakland, Offutt AFB, Ogallala, Omaha, Ord, Papillion, Pierce, Plainview, Plattsmouth, Ralston, Ravenna, Schuyler, Scottsbluff, Seward, Sidney, South Sioux City, Springfield, St. Paul, Stanton, Stromsburg, Superior, Sutherland, Sutton, Syracuse, Tecumseh, Tekamah, Terrytown, Valentine, Valley, Wahoo, Wakefield, Waverly, Wayne, West Point, Wilber, Wisner, Wood River, Woodland Park, Wymore, York, Yutan and all other cities near me in NE - The Cornhusker State.
Also learn about Nebraska small business insurance requirements for general liability, business property, commercial auto & workers compensation including NE business insurance costs. Call us (402) 235-4795.