Business Income Coverage
Did you know…………..If a loss causes your business to close down for an extended period of time, your current policy might not provide the income replacement to continue payroll for key employees?
As an owner of a business, we are sure you are aware of the importance of making sure your building and your business contents are protected from a disaster. But have you made sure you are insuring your lost income as well? If a tragedy interrupts your normal business operations, the lack of your income will be one of your greatest losses. It’s important not to overlook the need for Business Income Insurance. It’s one of the most valuable insurance coverages available to your company.
A business income policy is triggered when daily operations are suspended due to a covered peril such as a storm, fire, explosion or other disaster. The insurance is designed to replace the income that your business would have made under normal circumstances, which makes it possible to meet the fixed expenses such as payroll, rent, utilities and loan payments.
Business Income policies vary, most will limit coverage to an interruption caused by direct physical loss, by a covered peril, or to property at the specified location. In most cases your policy will carry extra expense coverage, in which your carrier will also pay any expenses incurred to quicken your recovery or otherwise reduce your loss. The Insurance Service Office (ISO) has two business income forms, one with extra expense coverage and one without. You can also purchase extra expense coverage by itself.
Since none of us can predict when you may need to file a business income claim, the next best thing is to prepare for it. Knowing the proper actions to take in the wake of a catastrophe can help speed up the claims process and can save you from a lot of unnecessary aggravation.
If you do not currently have this coverage, let us help protect your business by providing you with a quotation.