Over the last two years, wildfires have damaged millions of acres and thousands of buildings across the southeastern and western United States. Many businesses were fortunate not to be directly damaged by the fires but still suffered financially due to evacuation orders preventing customer access in a threatened area. Further, once evacuation orders are lifted, businesses may continue to suffer financially due to a shortage of customers.
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Business interruption insurance is good but may have gaps. For example, if a business is forced to close due to fire damage to its building, business interruption insurance would pay bills and supplement lost income during repairs. Here's the problem; many such policies limit or exclude coverage when the business doesn't suffer direct physical damage.
It is possible to get business interruption coverage for losses associated with denial of access resulting from an order from a civil authority. It is often offered as an add-on to a standard commercial property policy, so ask your agent or broker about the benefits of adding such coverage.
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