Business income insurance (also known as business interruption insurance) helps a business stay in business when a covered loss forces the business to close temporarily. It is one of the most misunderstood, and commonly underinsured, business insurance coverages.

Here is a to-the-point explanation and easy digital resources to super simplify the process of buying proper business income insurance.
 

WHAT DOES BUSINESS INCOME INSURANCE COVER?

Business Income, in general, pays for net income (or loss) plus continuing normal operating expenses including payroll in the event of loss resulting from damage to insured property. It does not pay for lost sales but instead pays for the net income and for the operating expenses that the lost sales would have generated.
 

IS BUSINESS INCOME INSURANCE REQUIRED?

Yes, most of the contracts you sign will have insurance provisions that often include business income coverage requirements.
 

WHAT DOESN’T IT COVER?

All insurance policies have coverage exclusions. Here are a few things that business income insurance does not cover:

  • Loss of income without insured damage from a covered cause of loss to insured property at an insured location
  • Financial failure unless caused by an insured event
  • Loss due to a supplier (or major customer) going down unless specifically endorsed to the policy for coverage
  • Loss due to the economy
  • Costs associated with product recall unless specifically insured

 

HOW MUCH BUSINESS INCOME COVERAGE SHOULD OUR BUSINESS CARRY?

For a rough idea of your potential risk to be insured, check out this easy Business Income Coverage Calculator.

For a little more detail, use this one-page fillable Business Income Worksheet with built-in calculation…allows you to strategize alternatives instantly.  

And for 10 simplified additional definitions, check out A Few Important Considerations.

 

Too many people purchase insurance as if a loss will never happen to them. The truth is that insurance should be purchased as if a loss will absolutely happen.

We offer self-serve solutions to save you time and money…but they are all backed by live expertise.

For live business income insurance expertise, just send us an email at info@vantreo.com or call us at 800-967-6543 ext 230.

We’re here to increase the profitability of your company.