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Colorado Auto Theft Prevention Authority Announces Law Enforcement Grants

The Colorado Auto Theft Prevention Authority (CATPA) this week announced eight grant awards totaling nearly $2 million to target and combat auto theft statewide. The grant recipients include funding for seven multi-jurisdictional auto theft task forces made-up of 34 law enforcement agencies from across the state. More...

Colorado's Wild Week of Severe Weather Carries a $161.1 Million Price Tag

The preliminary tally for damage to property and vehicles is estimated at $161.1 million from approximately 34,000 insurance claims. Most of the damage stems from the widespread hail—battering cars and homes—adding up to nearly 21,000 auto claims and 13,000 homeowner claims. More...


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Business Interruption Insurance

What is Business Interruption Insurance?

If a catastrophe, such as a fire, causes your place of business to be temporarily unusable, your business may have to relocate or even close down for awhile. Business interruption insurance (also known as business income coverage) is designed to help in these situations. 

Business Interruption Insurance Covers:

  • Profits you would have earned, based on your financial records, had your property not been damaged by the covered disaster.

  • Operating expenses, such as electricity, that may occur even if the main business activities are temporarily stalled.

  • Some policies cover expenses incurred from operating out of a temporary location while the original premises are being repaired.

How to Purchase Business Interruption Insurance:

Business interruption insurance is not sold as a policy by itself. It may be added onto a property insurance policy or included in a package policy, such as a business owner's policy (BOP). Check with agents for different options.

  • 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.

  • The policy price is related to the risk of a fire or other disaster damaging your business premises. Factors that affect this are location, the nature of your business, and how easily your business could operate out of a temporary location.

What is Extra Expense Insurance?

Extra expense insurance reimburses your business for reasonable expenses beyond normal operating expenses that keep the business from shutting down during a post-disaster restoration period. Usually, extra expenses will be paid if they help decrease business interruption costs. Some companies may find extra expense coverage sufficient without business interruption coverage.

Information provided by the Insurance Information Institute

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Updated: February 28, 2007 1:52 PM
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