Business Income Insurance – Coverage to Help Keep a Business Running

When disaster happens, a business may need to close temporarily. And when closed, that means loss of income.

Loss of income is one of the main reasons most businesses don’t reopen after a serious loss. Expenses don’t suddenly go away. In fact, they may spike significantly. Without revenue, it can be difficult for a business to survive.

Business Income insurance helps keep the capital flowing when a businesses doors are shut  temporarily and indefinitely after a loss.

With business income insurance, you are reimbursed for revenues lost during downtime when your property is damaged by fire, theft, vandalism or a natural disaster. Business income will also reimburse for expenses incurred to minimize the suspension of business operations, such as rent paid for a temporary office while the damaged property is being repaired.

What’s more, options might include coverage for business interruption resulting from:

  • Loss of off-premises utility services, including water, communication or power
  • Loss to a dependent property, such as a major supplier or customer
  • Electronic vandalism for business conducted over the Internet
  • Food contamination in restaurants and food service businesses

Business income coverage is usually included under a property insurance policy, but you should double-check that you have this and understand what the terms of the policy form are. If you have a Businessowners insurance policy, business income insurance will most definitely be included under the policy.

Source: The Hartford

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About Jim Kinmartin - CA Small Business Insurance Agent/Broker

Jim is a California licensed Property & Casualty AND Accident & Health insurance agent working at the ISU - Olson Duncan Insurance brokerage in Torrance, CA. He grew up in Fullerton, CA and graduated from Servite High School in Anaheim and Loyola Marymount University in Los Angeles and currently lives in Long Beach, CA. Have questions? Just ask! Or, follow Jim on Twitter at @JimKinmartin

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  1. The Ins and Outs of Small Business Insurance | Jim Kinmartin - June 19, 2014

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