Choosing the right insurance policies for your business can be confusing and stressful. While you want to make sure you have enough coverage for your business, you also do not want to waste money on insurance policies that you do not need. When looking into insurance policies for your business, make sure not to skip over business income coverage.
Business income coverage, also known as business interruption coverage, will protect your business against loss of income or profits. Loss of income can be cause from a variety of different incidents, including, property loss or damage due to a fire, a natural disaster, theft, or vandalism to the business. The policy will cover the time that the business is shut down until the property is repaired or replaced. While a property policy will cover the cost to repair the property, it will not cover the loss of income that a business experiences while being closed for repairs.
Business income coverage will compensate the business owner from the time of the initial damage, until the end of the repairs or replacement. Typically, this is a 30 day period, but can be extended up to 360 days by an endorsement. To ensure that you get the proper amount of benefits from your business income coverage policy, it is important to make sure you have accurate records for at least the prior year. The amount that the insurance company will base their amount of coverage off of your previous year’s profits. Make sure to keep a set of the records off site in case the primary set is destroyed during the damage.
To ensure that your business has the right amount of coverage in case of damage, contact Lou Aggetta Insurance Services. As an independent insurance company, we will work with our affiliates to ensure you get the right amount of coverage at the right price.