Tom Meaglia photo

Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

May/June 2020

Business Interruption Insurance

Business Interruption Insurance

When fire, theft and other events cripple a company, it can suffer financial losses severe enough to put it out of business. But business owners can soften this potential financial blow by carrying business interuption insurance, which often comes as part of business owner policy coverage. Heres' what you need to know about this important protection.


A Primer
Property insurance pays property damage claims and general liability insurance covers like-named events, but neither will help replace a company’s income or pay its continuing expenses when the business shuts down. However, business interruption insurance can help to meet payroll, pay regular expenses like taxes and mortgages, replace lost net income and even relocate the business in certain situations.


Covered events that can slow or shut down your business generally include fire and theft, but could also include a labor strike, a data breach that halts business operations and more. Some insurers even offer an additional measure of protection by insuring against supply chain disruption when a covered event halts the work or supply provided by vendors.


Business interruption insurance generally won’t cover losses from events that typically require specialized insurance, such as floods, earthquakes and sometimes, wind. Check your policy to make sure you understand what it covers and any exclusions.


What You Need
Not every business will qualify for the coverage. Generally, you must be in business long enough to demonstrate an established record of sales and a track record of profitability over time, plus the ability to maintain the same pace of profits. You will also have to prove your loss claim and the amount of time it will take to get your business back on its feet.


If you meet these terms, business interruption insurance may help keep your firm viable by paying vendors, interest on loans and employees’ salaries and benefits while they’re out of work. The physical size of your business, amount of coverage, its claims history and other factors will affect the price of the insurance. Do your homework before buying this insurance, because policies can differ greatly, as can covered events, limits and exclusions.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.