Business Interruption Insurance South Carolina Policy Information
Business Interruption Insurance South Carolina. 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 South Carolina coverage can help protect your business in case of a disaster or other loss.
Business interruption insurance South Carolina 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 South Carolina 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 SC 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 South Carolina coverage amount.
Why Is BII Coverage Necessary?
SC 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.
South Carolina Economic Data, Regulations And Limits On Commercial Insurance
If you are an entrepreneur and you are either thinking about starting a new business or you are considering expanding an existing company to a new location, you know how important it is to choose the right area for your operation. In order to achieve as much success as possible, the location must offer favorable conditions and a market that will benefit from your products and services, and that those products and services will appeal to.
There are several aspects that indicate whether or not a specific state offers favorable conditions for business operations. Two of the most crucial aspects include the unemployment rate of the state, as well as the industries that are seeing the most activity in the state.
Additionally, it's also vital for prospective business owners to be aware of the different types of commercial insurance policies they will need to carry within a particular state to ensure that they are properly covered and complaint with the law.
If you're thinking about conducting business operations in South Carolina, read on for an overview of the economic trends and commercial insurance requirements in the Palmetto State.
Economic Trends For Business Owners In South Carolina
Unemployment rate is a telltale indicator of the economy of a state. The lower the rate, the healthier the economy is, and in turn, the more opportunities there are for businesses. As per the Bureau of Labor Statistics, the unemployment rate in the state of South Carolina was 2.3% in December, 2019.
Compared to the national average of 3.5% during the same time period, the economy of SC is booming. The health of the economy is further illustrated by the steady decline in the state's unemployment rate, which was 3.4% in July, 2019 and fell steadily until reaching the above-mentioned 2.3% in the last month of the year.
As in most states, large metropolitan areas are the best places to start a business in South Carolina; however, there are also several smaller cities and suburban locals that are also seeing an uptick in business ventures. Some of the destinations that companies might consider include:
- Fort Mill
- Hilton Head Island
- Myrtle Beach
The industries that are seeing the most activity in SC include:
- Aerospace and aviation
- Alternative energy
- Automotive manufacturing
- Biotechnology and life sciences
- Hospitality and tourism
- Logistics, transportation, and distribution
Commercial Insurance Requirements In South Carolina
The South Carolina Department of Insurance regulates insurance in SC. South Carolina mandates very few forms of insurance coverage by law. They enforce worker's compensation.
South Carolina requires you to have worker's compensation insurance if you hire 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.
South Carolina 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 South Carolina quote in Abbeville, Aiken, Anderson, Batesburg-Leesville, Beaufort, Belvedere, Bennettsville, Berea, Bluffton, Boiling Springs, Burton, Camden, Cayce, Centerville, Central, Charleston, Cheraw, Chester, Clemson, Clinton, Clover, Columbia, Conway, Darlington, Dentsville, Dillon, Easley, Edgefield, Five Forks, Florence, Forest Acres, Forestbrook, Fort Mill, Fountain Inn, Gaffney, Gantt, Garden City, Georgetown, Goose Creek, Greenville, Greenwood, Greer, Hanahan, Hardeeville, Hartsville, Hilton Head Island, Hollywood, Homeland Park, Irmo, James Island, Ladson, Lake City, Lake Murray of Richland, Lake Wylie, Lancaster, Laurel Bay, Laurens, Lexington, Little River, Lugoff, Marion, Mauldin, Moncks Corner, Mount Pleasant, Murrells Inlet, Myrtle Beach, Newberry, North Augusta, North Charleston, North Myrtle Beach, Oak Grove, Orangeburg, Parker, Piedmont, Port Royal, Powdersville, Red Bank, Red Hill, Rock Hill, Sangaree, Sans Souci, Seneca, Seven Oaks, Simpsonville, Socastee, Spartanburg, St. Andrews, Summerville, Sumter, Taylors, Tega Cay, Travelers Rest, Union, Valley Falls, Wade Hampton, Walterboro, Welcome, West Columbia, Woodfield, York and all other cities near me in SC - The Palmetto State.
Also learn about South Carolina small business insurance requirements for general liability, business property, commercial auto & workers compensation including SC business insurance costs. Call us (803) 500-9096.