Agency Blog

What Can Business Income Insurance Do For You?

Business Income coverage, also called business Interruption coverage, is protection against loss of income or profits, in which a business has suffered a property loss or damage from a fire, natural disaster, theft, vandalism or other covered events.

As a business owner, you very likely have property insurance to cover the physical damage to your structure or equipment. However, some disasters take a long time to recover from or rebuild. Without this important form of protection, it may be extremely difficult to survive extended periods of time during which your business may not be operable. This extra policy provision is applicable to all types of businesses, as it is designed to put a business in the same financial position it would have been in if no loss had occurred.

Consider the many businesses affected by the Gulf oil spill. While they were eligible for Federal Emergency Management Aid, that assistance was in the form of low-interest loans and recipients were required to repay them. Many spill-affected businesses are still repaying on those loans. Also consider the fact that numerous owners were unable to secure this type of public aid until months after the spill and the damage to their business was already taking hold. Because FEMA aid requires an act of Congress, relying on this type of assistance following a disaster often proves too little, too late.

A business income insurance policy typically covers profits that would have been earned based on your previous months’ financial statements. Coverage can also include your fixed costs such as operating expenses still incurred by the property such as rent or commercial taxes. Some policies even cover the added costs of having to temporarily move your location and operating off-site. Your options can also include coverage for extra (reasonable) expenses sustained due to continuing operation while your structure is being repaired or rebuilt. Many policies also include coverage for government-mandated actions such as street closures.

If this sounds like coverage your business could benefit from, knowledgeable, independent agents at Reeves, Coon & Funderburg are always available to answer any questions you may have and even assist you in filing a claim. Our experienced agents are able to locate you a variety of business income insurance policies from a number of providers, ensuring the one you choose offers the best coverage at the most competitive rates. Contact us to find out more about how a business income insurance policy can ensure your business can survive following any disruption.



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