Business Income Insurance for Covering Lost Income
The main concern for most business owners is generating steady income. A business that struggles will eventually either sink or swim. That’s why business income insurance is worth your consideration. It can help you and your business recover following an event that causes lost income.
Recovering from a Costly Disaster
Business income insurance is sometimes known as business interruption insurance. It’s main goal is to compensate your business, the policyholder, for monetary losses resulting from a disaster. For example, your business might shutdown temporarily to make repairs following a tornado. Or a flu outbreak might force you to close your offices.
Business income coverage isn’t the same as business property insurance. Property insurance covers the loss of physical property. But income coverage helps compensate your business for profits lost when the business was forced to close or rebuild following a disaster.
Getting the Coverage You Need
Business income insurance can be added to an existing business property policy or a business owner policy. But in some instances, it’s possible to purchase business income coverage as a standalone product. If it’s added to an existing policy, then it will only cover incidents that the original policy covers. But if business income insurance is purchased as a standalone product, covered events will be defined within the policy.
More than Lost Profits
The primary goal of business income insurance is to cover lost profits. But other losses are sometimes covered as well. Some examples of events that might be covered include:
1. Costs associated with relocating to a temporary location while the business location is undergoing repairs.
2. Costs associated with training employees to learn new equipment.
3. Relocation ordered by the government that affects business operations.
The policy will cover the business until the end of the interruption period, as decided by the insurer. Speak with your insurer to learn more about your options for business income coverage.