As the federal government shutdown continues, many of us in the private sector carry on with business as usual. But what if a shutdown doesn’t just impact the government? What if it’s your business and employees who are affected? If your business experiences a temporary suspension of operations, are you prepared to handle the financial fallout?
What Is Business Income Coverage?
Business Income coverage, added to your Commercial Property Policy, is designed to cover costs during an interruption to your business operations. For example, if a fire causes significant damage to your building and halts operations, your Commercial Property Insurance will cover the rebuilding process. However, rebuilding may take months—or even years.
During this time, Business Income coverage can help cover:
- Mortgage payments
- Utility bills
- Property taxes
- Key personnel payroll
- Lost profits
This ensures your business can resume operations seamlessly once repairs are complete.
How Do You Prepare?
Having the correct amount of Business Income coverage is crucial for mitigating risks associated with property claims. Depending on your policy, you may need to specify a dollar amount for coverage or opt for “Actual Loss Sustained” coverage for a set period (commonly 12 months).
To determine the appropriate coverage, review the following:
- Net Income: Income the business would have earned without a loss
- Continuing Expenses:
- Rent
- Utility payments
- Mortgage payments
- Property taxes
- Equipment leases
- Key personnel payroll
Our carrier partners often provide detailed income and expense spreadsheets to help accurately calculate the coverage amount. Contact us for assistance.
What Events Can My Business Be Covered For?
Business Income coverage typically protects against the following perils:
- Fire
- Theft
- Vandalism
- Sprinkler leakage
- Hail
- Windstorm
Understanding the coverage form on your policy—whether specified perils, broad form, or special form—is essential to knowing what’s covered. Contact a coverage design specialist at Swarts, Manning & Associates for a full policy review or a new quote.
Find Out How We Can Help
At Swarts, Manning & Associates, we offer a unique perspective on coverage options and match you with the carrier that best suits your business needs. Our goal is to secure the broadest coverage at the best rate. Contact us today to get started: (833) 878-2820.
Click here to submit a Quote Request
If we have had the pleasure of working with you, we would love for you to leave a review on Google. Your honest thoughts help us improve and grow, and allow potential customers to get a better understanding of what we have to offer. Thank you in advance for your time and support!