Business Interruption Insurance Rhode Island

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Business Interruption Insurance Rhode Island Policy Information

RI Business Interruption Insurance

Business Interruption Insurance Rhode Island. 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 Rhode Island coverage can help protect your business in case of a disaster or other loss.

Business interruption insurance Rhode Island 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 Rhode Island 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 RI 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 Rhode Island coverage amount.

Why Is BII Coverage Necessary?

RI 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.

Rhode Island Economic Data, Regulations And Limits On Commercial Insurance

Made In Rhode Island

If you are considering starting a business, it's important that you choose the right location for your operation. Ensuring that the area offers the right market and demographics that will benefit from and be interest in the goods and/or products that your business intends on providing are vital for your success.

If you are thinking about starting a new company in Rhode Island or would like to expand the operations of an existing company into the state, it's crucial that you ensure the state offers a healthy climate that will allow your business to reap as much success as possible.

By assessing the employment rate of a state, as well as the key business sectors that are thriving there, you can determine if Rhode Island is a practical location for your company. Additionally, to ensure that you are in compliance with the law, it's imperative that you are aware of the commercial insurance coverage that business owners are required to carry in the state.

Below, we offer an overview of the economic trends and commercial insurance requirements in the Plantation State so you can determine if it will be a good location for your business.

Economic Trends For Business Owners In Rhode Island

As of December, 2019, the Bureau of Labor Statistics reported that the unemployment rate in the state of Rhode Island was 3.5%, which was on-par with the national average, which was also 3.5% at the same time.

Economists credit favorable taxes, the close proximity to regional markets, and the diverse workforce for the state's health economy.

In regard to locations within the state that offer the best opportunities in the Ocean State, urban areas are ideal. This includes:

  • Cranston
  • Newport
  • Pawtucket
  • Providence
  • Warwick

The suburban regions that surround the state's metropolitan areas also offer favorable conditions for businesses.

Businesses of varying sizes and in a variety of industries are thriving in RI. At the time of writing, the sectors that are seeing the most activity in Rhode Island include:

  • Construction
  • Education
  • Entertainment
  • Financial services
  • Government
  • Health care
  • Hospitality and tourism
  • Information
  • Manufacturing
  • Professional services
  • Retail
  • Transportation
  • Wholesalers
Commercial Insurance Requirements In Rhode Island

The Rhode Island Division of Insurance Regulation regulates insurance in RI. Rhode Island mandates very few forms of insurance coverage by law. They enforce worker's compensation.

Rhode Island requires you to have worker's compensation insurance if you have four or more employees 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.

Rhode Island 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.


Commercial Real Estate Insurance

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 Rhode Island quote in Barrington, Bristol, Burrillville, Central Falls, Charlestown, Coventry, Cranston, Cumberland, East Greenwich, East Providence, Exeter, Foster, Glocester, Hopkinton, Jamestown, Johnston, Lincoln, Little Compton, Middletown, Narragansett, New Shoreham, Newport, North Kingstown, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Richmond, Scituate, Smithfield, South Kingstown, Tiverton, Warren, Warwick, West Greenwich, West Warwick, Westerly, Woonsocket and all other cities near me in RI - The Ocean State.

Also learn about Rhode Island small business insurance requirements for general liability, business property, commercial auto & workers compensation including RI business insurance costs. Call us (401) 371-8771.

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