Carrying comprehensive insurance for your business is essential — but it’s important to remember that simply protecting premises, inventory, and tangible assets may not be enough to thoroughly protect a business. A business that has faced a severe accident — whether a major robbery, natural disaster, or other event — may find that existing coverage sufficiently protects the physical property, but is not sufficient to cover loss of income resulting from property damage. In such situations, business income coverage can be enormously valuable.
Why Is Business Income Coverage Necessary?
Just because damages at your physical location are covered does not necessarily mean you can weather the storm of losing income due to physical damage. Repairs and renovations can take weeks or months, and the loss of income over that period can be sufficient to sink a business.
Business income coverage can make up that gap. If applicable to your circumstances, it can cover up to 100% of regular lost income, ensuring that you can stay afloat during a repair — and that once your physical premises are back to normal, you can immediately get to work.
Speaking to a qualified insurer about business income insurance will help protect your company in the event an unexpected incident forces you to halt business operations.