Understanding Business Income Insurance

Businesses require insurance coverage for many reasons. In addition to protecting your company’s property and providing financial assistance when responding to lawsuits, insurance can also provide critical aid if an incident forces your business to cease or alter its operations. Many common incidents, such as fire or wind, can cause significant damage to your property, and, while commercial property insurance may cover repairs, additional coverage is necessary to fully protect your finances. That’s where business income insurance comes in. 

What Is Business Income Insurance? 
Business income insurance, also known as business interruption insurance, is a crucial type of coverage for companies of all sizes and across all sectors. Without this coverage, the losses and expenses resulting from even a brief interruption of your regular operations could have devastating ramifications for your business.  

What Does Business Income Insurance Cover? 
Following an incident that derails the normal functions of your company, business income insurance can provide critical financial assistance. In general, most business income insurance policies will include coverage for the following: 

• Rent or mortgage payments—If an incident renders your business’s premises unusable, business income insurance can help cover the cost of rent and mortgage payments.
• Payroll—If your business ceases operations temporarily, this coverage can help ensure that employees continue to be paid.
• Lost income—This coverage can help reimburse your business for missing income that it would have accrued under normal circumstances.
• Taxes and loan payments—Your insurance may be able to cover various outstanding debts or bills, such as taxes or loan payments, during the covered period.
• Relocation—This coverage may be available as an additional endorsement via extra expense insurance. If an incident forces your business to relocate its operations temporarily, it can help pay for associated costs, including advertisements to spread the word. 

Get the Right Coverage 
An adequate business income policy is a critical component of any company’s insurance portfolio. Even the most careful and responsible businesses may not be able to eliminate all risks and exposures fully. Furthermore, incidents that interrupt your operations may arise from circumstances beyond your control, such as severe weather or criminal activity. Without business income insurance, your organization may lack the resources it needs to survive even a brief interruption of its operations. 

The agents at Germani Insurance Services are here to make sure that doesn’t happen. Our experts have over two decades of experience working with businesses in California, Arizona, Colorado, Nevada, Washington, Oregon and Utah. We will work with you to analyze your business income insurance needs and tailor an optimal policy. Visit our website or call us at 1-310-733-2390 to get started.