Tom's Blog
Your business is set up, things are running smoothly, and everyone seems to be happy until a covered loss happens, and then what? Let’s say that a fire occurs, resulting in business interruption and a drop in revenues. Will your North Carolina business insurance cover you for loss of income? Here is why every business needs business income coverage.
Without a building, the employees do not have a place to work, sales go unfulfilled and customers have to go elsewhere for their orders. One hour of destruction can take years to rebuild. Reestablishing business income is your main objective and that’s where NC business income coverage becomes vital to your business operations!
What is NC Business Income Coverage?
North Carolina business income coverage (also known as time element coverage) is created to provide coverage for loss of business income for a specific time period called “period of restoration.” What this means is, this NC business coverage will not kick in until it has been 72 hours after the loss, and ends when the business is rebuilt or reopens at another business location.
There are 3 requirements that must be met before business income coverage is applied:
- Loss of business income must be established
- Direct physical loss of property ON PREMISES must be present
- Covered cause of loss must be present
What Are the Types of NC Business Income Coverage?
There are 2 types of NC business income coverage:
- Coverage with extra expense: This coverage helps pay for extra expenses incurred to continue your business operation, after a loss resulting from a covered peril. It allows you, as the business owner, to be operational while you rebuild your business.
- Coverage without extra expense: This coverage does NOT include payment for extra expenses to keep your business running. The money will come out of YOUR pocket!!
Let’s say your business suffers a catastrophe from a fire and both contents and the building are a total loss. You MUST wait for 72 hours AFTER the loss has occurred before business income coverage kicks in; however if you have the business income coverage with extra expense, your moving costs and rental of temporary equipment will be covered IMMEDIATELY to allow your business to remain operational and to begin the rebuild.
Did You Know That There Are Coverage Add-Ons Available?
There are coverage add-ons available as well as endorsements for a very small fee. Always contact your NC independent agent to inquire what your specific needs are and how they can be best served!
Coverage add-ons and endorsements are there for businesses that are operating with a unique set of circumstances that may be excluded under the standard business income policy. Endorsements may be available for circumstances involving ordinance of law or disruption in utility services, to name a few. Coverage add-ons may include situations where the originally established date of restoration has been extended, or limiting/excluding payroll expenses of employees.
It is vital to protect your business, your employees, your vendors, and customers today! Contact Paramount Insurance Agency NOW at 336-869-3335 to help you determine which coverage(s) are right for your business.
