NEWS BRIEF
New Colorado Law Bans Text Messaging While Driving
On December 1st, a new Colorado law takes effect that bans text messaging while driving and prohibits all cell phone use for drivers 18 and younger. In an effort to generate public awareness about the new state law, RMIIA joined Governor Bill Ritter and other traffic safety leaders in announcing the teen winners of a contest to create print, radio and television public service announcements on the dangers of texting and cell phone use while driving.
Click here to view the teen ads.
Click here for more information on teens and shopping for insurance.
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:
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Profits you would have earned, based on your financial records, had your property not been damaged by the covered disaster.
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Operating expenses, such as electricity, that may occur even if the main business activities are temporarily stalled.
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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.
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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.
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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
Updated:
January 15, 2010 8:35 AM
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