Unexpected events like property damage from storms can temporarily shut down a business. Business income insurance, also known as business interruption or income loss insurance, helps protect against lost income during these closures or slowdowns.
Most Common Forms Of Business Income Coverage
Business Income insurance is intended to round out a loss. That is, it is intended to make you whole after a catastrophe that not only causes physical damage to your premises but also causes your operation to shut down and lose sales. The coverage includes protection for lost revenue and extra expenses needed to mitigate your loss.
Types Of Businesses That Need Business Income Insurance
While any company can benefit from increased insurance coverage, small businesses should especially consider business income insurance; they are usually the most vulnerable in the event of forced shutdowns. A robust policy can cover any business with a physical location, equipment or other property.
Is Business Income Insurance Right for You?
The cost of business income insurance depends on your industry, coverage amount, and risk level, such as being in a hurricane-prone area. Factors like business size, desired income replacement, and bundling with existing policies also affect your premium.
Business Interruption Coverage Under Business Income Insurance
Your business depends on steady revenue, so disruptions can have serious financial impacts. Interruption insurance offers valuable protection, helping secure your business’s future after unexpected events. With a reliable provider, you can get robust coverage with reasonable wait times.
What Business Interruption Insurance Does
Consistent revenue is vital to your business, and disruptions can lead to major losses. Interruption insurance helps protect your finances after unexpected events. A trusted provider can offer strong coverage with minimal wait times, ensuring your business stays secure.
This often includes covering employee wages, ensuring the business can still pay taxes on time and fulfilling contracts for fixed costs, such as rent or leasing. Some policies also cover additional options such as the fees associated with moving the business to a new location temporarily.
The Financial Implications Of Business Interruption Insurance
Business interruption insurance is beneficial not only for the protection that it provides, but also for its tax implications. The premiums or cost to add this type of coverage to your policy can be filed as tax deductible alongside other business expenses. This means that securing this type of policy is often rather accessible when compared to other policies.
Keep in mind that business interruption insurance typically doesn’t cover physical damages, such as repairs after a flood. That would require separate flood insurance. Instead, it helps recover lost income based on your past financial records.
Adding Interruption Insurance To Existing Policies
In general, business interruption insurance is not available as a standalone policy. Instead, it can be added on as a rider to your business income insurance or comprehensive package policy. The exact specifications of how to secure this type of insurance will depend on your servicer and what other types of coverage you already have.
Trust Atlas To Offer Comprehensive Business Income Insurance
Whether you are unsure if business income insurance is right for you or you are ready to establish a policy, choose to work with the best. The professionals at Atlas Insurance can help you understand your options and create a policy that is customized to your needs.