About Business Income Insurance
Having Business Income Insurance can save a lot of hassle, debt and be the determining factor that keeps you in business after an incident. Research shows that approximately 75% of businesses remain underinsured.
And when you have an underinsured business, you can bet that the risk of running that business increases significantly. While a lot of small businesses opt for personal insurance plans for their startups, it is usually not a smart idea. Businesses have unique needs and risks that are not covered through personal plans.
Business Income Coverage
Business income insurance is one way to protect your business from unforeseeable slowdowns, other economic issues or suspension of work due to physical damage to the property, depending on your plan.
So what exactly do these plans cover? And what are the benefits of getting one? Let’s have a look!
What is Business Income Insurance?
As implied in the name, business income insurance generally covers the income, or potential income lost. For example, if your business suffers loss of income due to property damage, your plan would cover the amount lost during the time it takes to repair the property and resume work.
That’s one of the reasons that business income insurance is also called business interruption coverage.
This kind of business insurance can also cover rent in situations where you have to continue payment despite a damaged property. Additionally, other payments like employee wages, taxes, monthly loan payments, and temporary relocation costs may also be covered. Some plans may allow you to include coverage for income lost due to the interruption of civil authorities, disruption of utilities or power supply.
However, keep in mind that you would need proof of your regular income and proof of the loss your business has suffered to claim any of the amounts covered by your plan. Be sure to carefully document any losses that occurred during your repairs or the slowdown to be able to file a strong claim with your insurance company.
Business Income policy
While insurance plans can be subjective, depending on the agency, there are a few things that most business income policies don’t cover. For example. the loss of income that occurs due to the following reasons may be excluded from a plan:
- Government seizure
- Nuclear hazards
- Extreme natural disasters
Generally, ordinary expenses spent on operations are also excluded, like:
- Undocumented income
- Loss due to closure of only part of your business
- Voluntarily closing your business without external causation
While this remains the general rule, keep in mind that some agencies may allow for this kind of coverage with an additional premium.
Finding the Right Agency For Business Income Protections
Finding the right agency for your business income insurance plans can be hard. Be sure to read the fine print carefully, compare premiums, coverage and do a lot of research before investing.
Here at Choice Plus Insurances, we offer competitive premiums and full disclosure to all our clients. Feel free to fill this short form and get in touch with us for an honest, informative consultation regarding all your insurance needs!