Tom's Blog
You have worked hard to establish your business and feel assured you have the right type of insurance coverage to protect your building, personal property and business autos, but do you have ALL of the appropriate needed coverage to protect your business should disaster strike? Imagine your business suffers significant damage due to a fire, resulting in the doors being closed for business for an estimated 6 months while the restoration is being done. Will your current business coverage provide compensation for all of the lost income? Knowing the importance of business income coverage is vital if you want to keep your business afloat when a covered loss causes destruction to your N.C. business.
What is Business Income Coverage?
Business income coverage is coverage that safeguards your business from loss of income should a covered physical loss/peril occur which results in a reduction or interruption of operations. There are many facets to business income coverage and how it aids in the support of rebuilding your business as quickly as possible while protecting customers, employees, the future of your business, and YOU, but how does it work?
Business income involves many considerations such as the following, but not limited to:
- Net income that would have been earned had the loss never occurred
- Continuing operating expenses, including payroll
- Extra expenses incurred- Extra expenses are basic expenses incurred during the period of restoration (ex: increased rent or advertising expenses) to avoid or minimize the interruption of business. It’s recommended that you always include Extra Expense coverage as part of your Business Income coverage.
*Note that the above are covered during a certain time period called the “Period of Restoration.” This is defined as the period of time that usually begins 72 hours after direct physical loss, or damage occurs. This ends on the date when the property is replaced, repaired, or rebuilt within a reasonable time period with similar quality OR the date the business is restarted at a new permanent site.
- Business Income coverage allows protection for you by continuing the financial aspect as though no loss has happened, aids in maintain customer loyalty, and maintains your key workforce. Without this type of business income coverage, your employees would be left without any income and would be forced to look for other employment.
Talk to Your Trusted N.C. Independent Insurance Agent Today!
Understanding business income coverage can be a confusing subject matter but it doesn’t have to be. Paramount Insurance is here for you because OUR business is to help YOUR N.C. business keep the doors open should a large, covered loss occur. We can help determine the right amount of needed coverage that is right for your business and your budget. Call us TODAY at 866-869-3335 for all of your N.C. business insurance needs.
