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A. Schoeneman & Co., Inc. > Blog > Understanding Business Interruption and Ordinary Payroll

Understanding Business Interruption and Ordinary Payroll

asch-banner5Whenever there is a loss to your business, a major expense for any organization is employee payroll and benefits, as long as they are paid by organization. When considering to buy this insurance for your business most organizations have to decide what type of employee should be paid during the period of restoration and which ones should not. Most insurers use the term “ordinary payroll” to either exclude or to be paid for a specific length of time , usually 90 days or a time period as offered by the insurance company. Basically ordinary payroll is payroll that the organization feels necessary that it must keep during the period of restoration. With the ordinary payroll endorsement in your business income policy the policy holder need not show it was necessary to continue to pay certain expenses. It will be covered for the time period purchased