Imagine this: a fire damages your office, forcing you to shut down for weeks. Your property insurance covers repairs, but what about the income you lose while your doors are closed? That’s where business income insurance steps in.
Consider a restaurant that suffers a kitchen fire. Repairs might take a month, and during that time, no meals are served, no revenue comes in—but expenses like rent and payroll continue. Business income insurance helps cover those losses so you can keep paying staff and maintain financial stability.
This coverage, also called business interruption insurance, replaces lost income when operations stop due to a covered event like fire, storm damage, or other disasters. It can also cover ongoing expenses such as utilities and even extra costs for temporary relocation.
Tips for Choosing Coverage:
- Calculate coverage needs: Review your historical revenue and fixed expenses to estimate how much protection you need.
- Understand restoration periods: Know how long benefits last while you recover.
- Look for extra expense coverage: This can help pay for temporary locations or expedited repairs.
- Consider bundling: Pair business income insurance with property, liability, or even cyber insurance if your business relies on online sales.
Downtime can be costly—lost customers, missed opportunities, and financial strain add up quickly. Business income insurance gives you breathing room to rebuild without worrying about cash flow. It’s affordable and often available as part of a comprehensive commercial insurance package
Have questions about your business income protection? Click here to talk to us about your current coverage or call our main office at (217)528-7533