The Benefits of Business Income Insurance
Loss of income is a major concern for some business owners. They understand that the success or failure of the business heavily depends upon maintaining a steady income. What happens when a business is forced to temporarily close its doors? Or what happens when a business must operate at a decreased capacity due to a disaster? The outcome of these two scenarios depends on whether or not the business as business income insurance. Here are some of the benefits of having coverage.
1. The insurer compensates the business when it must temporarily close for repairs. The bills don’t stop just because a business is closed. The utility bills are still due, and vendors still want to get paid. Business income coverage compensates the business for some of its lost income.
2. The business gets help with training employees. Following a major disaster, such as a fire, it’s possible that the business will lose some equipment. It’s also possible that employees will have to learn how to use new equipment that replaces the destroyed items. With business income coverage, the insurer will pay some of the costs associated with training employees.
3. The business gets help recovering from a government ordered relocation. It’s not uncommon for local government officials to displace business owners. They will usually compensate a business that’s forced to move, but compensation is generally only enough to obtain a new building. But business income coverage will compensate the business for income lost during the move.
Business Interruptions Can Occur
You never know when your business might experience a setback. A natural disaster could strike. Thieves might break into your building and steal important office equipment. Several things could happen to interrupt business operations. Are you prepared?Speak with your insurer about adding business income insurance to your existing business insurance policy. If that’s not possible, discuss purchasing a separate policy.