Covering ongoing expenses: If your business is temporarily shut down due to a covered loss, such as a fire or natural disaster, business income insurance can help cover ongoing expenses like rent, utilities, and payroll while you work to get back up and running.
Replacing lost income: Business income insurance can provide you with a steady stream of income to replace the profits you would have earned if your business had not been interrupted by a covered event.
Protecting your credit rating: Without business income insurance, you may be forced to take out loans or use credit cards to cover your expenses while your business is closed. This can lead to a significant amount of debt and damage to your credit rating.
Providing peace of mind: Knowing that your business can survive a temporary shutdown due to a covered event can provide you with peace of mind and allow you to focus on running your business without worrying about unexpected events that may impact your bottom line.
Business income insurance can help pay:
Options and endorsements for your business income coverage
There are several options and endorsements available for business income coverage, including:
Extra expense coverage: This coverage provides additional funds to cover any necessary expenses incurred to keep your business running after a covered loss, such as temporary relocation costs, extra advertising expenses, or rental of temporary equipment.
Extended period of indemnity: This endorsement extends the period of time for which you will receive reimbursement for lost income beyond the time it takes to repair or replace damaged property. This can be useful if your business requires a longer period of time to fully recover and return to normal operations.
Contingent business income coverage: This coverage provides protection against losses resulting from damage to the property of your suppliers or customers, which may prevent them from providing you with the goods or services necessary for your business operations.
Civil authority coverage: This coverage provides protection in the event that a government entity, such as a fire department or police department, prohibits access to your business property due to a covered loss, such as a natural disaster or a nearby accident.
Dependent properties coverage: This endorsement provides protection in the event that a loss occurs at a location that your business relies on for its operations, such as a warehouse or manufacturing facility.
Service interruption coverage: This coverage provides protection against losses resulting from a power outage or other utility interruption that causes your business to shut down temporarily.
What can't business income insurance cover?
Any income that is not documented
Losses not included within your property insurance policy, including floods or earthquakes
Closures from power lines
Losses from partial closures – if your business is limited, but still able to operate.
Commercial property insurance helps ensure the future of your business. It helps protect:
Business income insurance typically covers losses related to a business interruption caused by a covered peril, such as fire, theft, or a natural disaster. However, there are some situations that may not be covered by business income insurance, including:
Economic downturns or recessions: Business income insurance generally does not cover losses due to a general economic downturn or recession.
Power outages: Most business income insurance policies do not cover losses caused by power outages or other utility failures, unless they are caused by a covered peril, such as a natural disaster.
Cyber attacks: Business income insurance may not cover losses caused by cyber attacks, unless the policy specifically includes coverage for such events.
Pandemics: Many business income insurance policies specifically exclude coverage for losses related to pandemics or other public health emergencies.