| It's been
estimated that over 25% of business fail to reopen
after a major loss because they neglected to insure
the income vital to their continued operations.
In fact, many businesses are unaware that insurance
is available to protect their income in the event
of a covered loss. This type of insurance is referred
to as business income coverage.
Business income coverage protects against the
loss of income a business suffers when a covered
loss causes damage to the insured premises.
The loss doesn't have to cause the business
to shutdown entirely. Even a covered loss that
causes the business to slowdown can be covered
with business income coverage.
Tip. The business income form
follows the property policy which means in order
for coverage to respond to your loss of business
income, the loss must be covered on your property
policy. Make sure you review your business income
loss exposures with your professional agent
so you have the protection you need.
When reviewing the different options for your
business, you should know there are two primary
business income forms available:
Business Income with Extra Expense:
Many times after a loss occurs, businesses incur
numerous extra expenses to return their operations
to normal. With this form, these additional
expenses (cost to rent a temporary facility
until your building is repaired) can be covered.
Business Income without Extra Expense:
With this form, no extra expense coverage is
provided.
Many businesses know they need to cover their
property with insurance to replace physical
property. But most fail to see the significance
of their business coming to a halt after a loss.
Fortunately, insurance is available to answer
the need for income funds.
Tip. Every business should
consider some form of loss of income insurance.
Discuss this with your agent! It may be the
most overlooked form of protection that you
can't afford to ignore.
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