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Insurance Coverage That Could Save Your Business – Part 1

By August 28, 2014May 21st, 2020Insurance
Some types of insurance are required to operate legally, while others are optional

Of course, the coverage a business needs depends on the type of company you run and the number of employees who work there. There are also  some optional insurance coverage business owners should always consider.

Here is the first of three “optional” insurance coverages that business owners often leave out of their insurance package which could literally save the business in a time of crisis.

#1 – Business Income Insurance 

Business income insurance (also known as business interruption insurance) is an important but often misunderstood coverage. It is designed to replace income lost as a result of a disaster. This insurance policy is designed to supplement the resulting lost income as well as provide much needed dollars to pay continuing expenses such as salaries, rent and utilities.

According to the Institute for Business Home and Safety, 25% of businesses never reopen after a disaster or business interruption.  Business income coverage increases a business’ ability to survive a substantial loss.  So if your business has to close because of disastrous weather, national security threat, or because a tornado ripped half of your business apart, your business will still have income coming in.

While commercial property insurance protects your real estate and contents, business income insurance protects your business against loss to your firm’s profit-and-loss statement by covering continuing expenses, helping your firm preserve contractual obligations and retaining personnel.

Business income insurance will continually pay your business while it is down, allowing your business to be one of the businesses on the block to reopen their doors.