Protect Loss Income with Your Business Insurance

Business interruption or income coverage may be a type of business insurance you should consider if you ever experience a catastrophic event that requires you to shut down for a period. It is hard to predict times where it may be necessary to rely on some form of income continuity to keep the lights on and your business concern going. It is good to know that if such a time were to come, you have in place the essential coverage in your business insurance policy to provide until things return to normal.

What is Business Income Protection? 

When you purchased business insurance for your company, you more than likely purchased a “package” of coverages which includes protection of your business’s income. A business income policy provides protection against perils you face as a business owner, including: 

This type of coverage, found with the business owners insurance policy (BOP) portion of your business insurance, is an important part of your overall protection as a business owner. For example, say you are the owner of a small manufacturing company which has experienced damage to your electronic machinery due to a regional windstorm. The equipment is covered under the equipment protection policy you purchase but the income loss from the machine being out of service is not. A business income policy is what you need to provide the income loss from the equipment being out of service.

Is Business Income Insurance the type of Business Insurance Needed during a Pandemic? 

Perils typically covered by your business are those listed in the previous section (i.e. theft, wind damage, fire, etc.). An event like a viral pandemic such as the one experienced at the start of 2020 may or may not be provided for in your business income policy. To determine if this type of devastating event (the coronavirus or COVID-19) is covered, you need to review yourbusiness insurance protection to see if any exclusions from coverage exist. A question such as a pandemic has not been addressed on a scale as what businesses experienced in 2020. An objective review by a qualified insurance agent helps you properly determine what coverage you have for such a loss and what steps you should consider as a business owner.