Unplanned events like severe storms, fire and vandalism can result in a temporary closure of your business. If this occurs, a business income coverage policy can cover the loss of income.
How Does This Insurance Work?
This commercial coverage is an add-on to existing insurance and safeguards your company against income losses when damage causes a suspension of its operations. It benefits you in the following ways:
- Insurance of this kind assists with paying your everyday operating expenses while your organization is closed.
- The covered protections apply to the required repair timeframe, although they may extend for several days following completion, depending on your plan.
- This policy type helps keep you in business following an unexpected hazard that damages your property.
What Does a Business Income Coverage Policy Cover?
Most policies of this type can offset the following expenses:
- Fixed costs like payroll and rent
- Relocation to a temporary site until repairs are complete
- Reimbursement for lost profits based on your company’s prior month of revenue
- Required loan installments
- Tax payments to avoid late penalties during a closure
Fires and severe weather events can cause not only damage but also income loss. Securing a business income coverage policy can help keep your company afloat when you cannot operate due to unforeseen circumstances.