Most businesses insure their building or contents. However, when a business has a claim, the loss due to the interruption of operations typically far outweighs the loss to the structure/contents.
Over 50% of businesses never reopen after a major claim because of lost net income, lost clients, continuing debt payments, continuing lease payments, and salaries of key employees. They simply can’t stand all those months with reduced/no income while the building is being rebuilt. Business Income Insurance addresses this need.
Think about it like this: Property insurance puts your building back up. Business Income Insurance puts your business back up. It addresses the financial impact a loss can have. It pays for lost net (bottom line) income, necessary continuing expenses, and extra expenses you would otherwise not have had (rental of temporary space, debri removal, etc.)
But don’t rely completely on business income insurance. The best protection is to make a contingency plan. What would you do if you lost a your building? Where would you operate in the meantime? How would you pay bills? A business owner knows their business better than anyone and can best answer these hard questions. The best news is that a contingency plan is inexpensive. Not planning, however, can cost you your business.
Put our experience to work for you.
Contact us with any questions.