Do You Need Business Income Insurance?

Income Insurance

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.

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