By Sally Miles
If your business has to stop operations unexpectedly, there would be loss of business income. There is a type of insurance coverage which can help a business owner meet payroll and other operating expenses and replace actual loss of net income during the time required to repair or replace the damaged property after a loss.
There are a few important things to know about business income coverage:
- Business income is defined as net profit or loss before income taxes that would have been earned or incurred if no physical loss had occurred.
- This coverage is triggered by direct physical loss or damage to your property due to a covered loss AND a partial or full suspension of operations.
- Business Income coverage can be programmed to fit the needs of a specific business.
We recommend asking your insurance agent to help you determine whether business income coverage is essential for your operation. It could mean the difference between reopening after a covered loss or closing your doors for good.