If business interruption losses far exceed direct damage losses, the importance of this coverage cannot be overstated. Many embroiderers are pleased to know that loss of income coverage compensates for lost profits based on the businesses' projected monthly earnings, thus taking into account the sometimes seasonal nature of the embroidery market. Loss of income and extra expense coverages are limited to the actual length of time required to rebuild, repair or replace damaged buildings or business personal property. The amount of financial loss is determined by how long it takes for your operation to get back in business. For loss of income coverage to kick in, the suspension of business operations must be caused by direct loss or damage as a result of an insured covered cause of loss.
Payment is based on the operation's past history of seasonal profits and losses.
As with most insurance policies, it is your responsibility to make reasonable efforts to resume complete or partial operation as soon as possible in order to minimize loss. While it may take three to six months to rebuild your business after a covered loss, you will be required to remove debris, obtain bids and building permits, and perhaps face ordinance and zoning requirements prior to starting reconstruction. No matter how large or small your embroidery operation may be, securing adequate coverage is essential for protecting your business and peace of mind. Universal Insurance Facilities Ltd., offers complete coverage packages specifically designed to meet the unique needs of the embroidery industry. Inc. Please read our legal page before using this site.