Business property insurance is designed to protect your physical dwellings in event of damage or natural disaster. But what it doesn’t protect is the business itself; and the income it produces. Unless you have business interruption
or business income insurance, your business could suffer while the physical damage to your building is being repaired.
Business income insurance insures the profits which would have been earned during the repair time of the physical damage. Typically, business income insurance is not sold as a stand-alone product, but can be added to a property insurance policy. This extra policy provision applies to all types of businesses. It is designed to replace your revenue as if no loss had occurred.
What is typically covered with business income insurance?
- Profits – Which would have been earned, based on prior months financial statements
- Fixed Costs – Operating expenses and other costs still being incurred by the property, based on historical costs
- Temporary Location – Expense of moving to, and operation from, a temporary location
- Extra Expenses – Reimbursement for reasonable expenses, beyond fixed costs, that allow your business to maintain operation
- Civil Authority/Ingress/Egress – Government mandated closure of a business premises which directly relates to lost revenue. Examples include: government issued curfews or street closures related to covered events.
Business income insurance coverage will cover the business interruption for the time determined by the insurance policy. Most policies define this as from the day the interruption occurred until the day you can resume business as usual.
In addition to this, businesses can also purchase contingent business interruption coverage which pays out when a vendor or supplier of the business experiences damages that prevent it from regular trade.
If you are a business operating in the state of Missouri, you understand the vulnerability you have due to natural disasters. We operate in an area that experiences floods, tornadoes, ice storms, and excessive heat. Any one of these can render your physical property uninhabitable. While rebuilding can takes months, can your business survive without incoming revenue?
For more information about our business income insurance programs, contact Joe Bosse at email@example.com or call 636.271.2481 and visit www.necins.com for a complete listing of our business and personal service offerings.
NEC Insurance is one of the largest independent insurance brokers in Missouri offering business and personal insurance, financial services, and risk prevention. For more information visit www.necins.com or call 636.271.2481.