Why should I purchase business income insurance?
That’s an excellent question, and it’s a question asked by many business owners like you.
Business income insurance (sometimes called business interruption insurance) can make the difference between “life and death” of a business following a catastrophic loss. It can be as vital to your survival as fire insurance on your buildings and personal property.
Most business owners would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But too many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable. A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.
Business income insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. It covers the profits you would have earned, based on your financial records, had the disaster not occurred. It also covers operating expenses, like rent or mortgage payments, that continue even though business activities have come to a temporary halt. And, it pays for extra expenses you incur to expedite recovery or continue operations, such as a move to a temporary location.
Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track. There is generally a 48-hour waiting period before business income insurance kicks in.
Business income insurance is surprisingly affordable. In fact, some package policies provide the coverage automatically without additional cost. Ask your agent for a proposal and premium quote.
Swingle, Collins & Associates specializes in business income insurance coverage. The descriptions of coverages listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs for business income insurance please contact your dedicated risk manager to discuss benefits and services.
The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverages, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.